1 / 20

Budgets and Mill Levies

Budgets and Mill Levies. How they work together…. Make this YOUR session! . Stop me and ask specific questions at any time during the presentation. Help me meet your expectations on what topics need to be addressed here today. Budgets and Mill Levies.

makani
Download Presentation

Budgets and Mill Levies

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Budgets and Mill Levies How they work together…

  2. Make this YOUR session! • Stop me and ask specific questions at any time during the presentation. • Help me meet your expectations on what topics need to be addressed here today.

  3. Budgets and Mill Levies • Budgets and Mill Levies are two separate calculations. • An honest and accurate budget should be presented prior to establishing a mill rate. • You need to estimate what a mill can produce to help prepare a budget. • Your budget should NOT be set simply by using the maximum number of mills allowed.

  4. Gross dollar budgeting • A budget request should include all costs associated with a department or subdivision. • If your entity must pay 100% of a project to receive 80% grant reimbursement upon completion, the entire cost of the project must be included in the budget request. • The reimbursement should be included in the estimated revenues for that budget.

  5. A levy is a calculated need for funding • Approved budget 100,000 • Reserve ( up to 75%) 75,000 • Total appropriation 175,000 • Less: • Estimated cash balance 40,000 • Estimated revenue 20,000 60,000 Amount required from mill levy 115,000

  6. Ad valorem tax (according to value) • A mill is an amount of tax per thousand currency units of property value. • To determine the mills required for this request: $115,000 divided by 21,502,211 total taxable for the entity = .00534 as a per thousand becomes spoken as 5.34 mills

  7. …Ad valorem tax • The calculation may be reversed to determine tax costs for a property. • Taxable value = true & full value x 50% x 10% (or 9% for residential property) • Mill rate stated as 217.34 (shift decimal three spaces to the left for calculation) • .21734 x 3675 taxable value • = $798.72 tax due

  8. Maximum mill levies • http://www.nd.gov/tax/property/pubs/levy-limitations.pdf • The publication provides: • A list of levies available • NDCC references • Remarks regarding acceptable uses for the levy • General Fund may be used to support special revenue funds • How the maximum levy may be reached • by resolution or • by vote of electors

  9. North Dakota Century Code • Use resources available to understand law that governs the levy being used. • http://www.legis.nd.gov/information/statutes/cent-code.html

  10. Maximum mill levy worksheet • 2012 value increase due to equalization, detailed soils, capitalization rate change • taxpayers’ response to notices • increase to tax levy in hands of local governing bodies

  11. …Maximum Mill Levy Worksheet • Begins with base year tax, which is the largest amount of dollars levied in the last three years. • Loss of property value • may allow levies to become higher than NDCC maximum • allows entities to continue to levy amount required to provide services as valuation is lost

  12. …Maximum Mill Levy Worksheet • New property valuation • new taxable value added to the base year may generate more levy dollars • new taxable value added to the base year may reduce the calculated mill levy

  13. …Maximum Mill Levy Worksheet • County Of ____________________ • Maximum Levy Worksheet - For Tax Years Beginning With 2010 • Taxing District __________ Fund _____________________ Tax Year _________ • 1. Taxes levied in the last three years (Final levy from Maximum Levy Worksheets): • a. last year $ _______, b. two years ago $ ________, c. three years ago $ _________ • 2. Base year taxes levied (item 1a, 1b, or 1c, whichever is greatest) .......$ _________ • 3. Temporary increased or excess levies in effect for the base year but now expired .....................................................................................................................$ ________ • 4. Base year taxes excluding expired levies (line 2 minus line 3) ……........$ ________ • 5. Base year taxable value of taxable and exempt property ............ $ ________ • 6. Calculated mill rate for taxes levied in the base year (line 4 divided • by line 5) ..............................................................................................________ • 7. Taxable value of taxable and exempt property which was in the taxing • district in the base year and is not in the current year ....................... $ ________

  14. …Maximum Mill Levy Worksheet • 8. Adjustment for property no longer in the taxing district (line 6 times line 7) ..$ ________ • 9. Taxable value of taxable and exempt property which was not in the taxing district in the base year ................................................................................. $________ • 10. Adjustment for property added to the taxing district since the base year (line 6 times line 9) ........................................................................................................................$ ________ • 11. Adjusted base year levy (line 4 minus line 8 plus line 10) …………………..$ ________ • 12. Current year taxable value of taxable property .................. $ __________ • 13. New, increased, or excess levies in mills authorized by the legislature • or the electors ....................................................__________ • 14. New, increased or excess levies (line 12 times line 13) ..... $__________ • 15. Base year levy plus increased levies (line 11 plus line 14) …………………..$________

  15. …Maximum Mill Levy Worksheet • 16. Maximum mills otherwise provided by law including increased or excess levies approved by the voters ........................................................................._________ • 17. Maximum levy otherwise provided by law (line 12 times line 16) ....$ ________ • 18. Allowable total maximum levy (line 15 or line 17, whichever is greater) ………………………………………………………....................................$ ________ • 19. Levy certified by the taxing district for the current year ...................$ ________ • 20. Final levy (line 18 or line 19, whichever is less) ...............................$ ________ • 21. Final mill rate (line 20 divided by line 12) ..................._______ mills

  16. …Maximum Mill Levy Worksheet • Budgets/tax levy must be set on or before the October meeting (NDCC 11-23-05) • Final levy calculated cannot be larger than levy certified by taxing district • Forms and instructions available at http://www.nd.gov/tax/property/forms

  17. Budget management • Expenditures beyond the approved budget must be handled by an amendment • amendments made after end of fiscal year • not required for each line item of fund • determined by bottom line of fund, budget to expense percentage • include amount of January expenses that were incurred prior to end of previous year • must be approved and recorded in minutes

  18. Budget management • Once expended, revenue returned to fund does not return to the balance of the budget • Revenue was estimated in determining initial budget • Unexpected revenue may be used to support special requests and budget amendment documentation • Unused appropriations become part of a fund balance used to determine budget and levy needs for future years

  19. Budget management & levies • Proper preparation and management of budgets • allows clear explanation of use of taxpayer funds • helps to provide fund managers accurate information regarding fiscal responsibilities • can reduce concerns expressed about misuse of mill levy maximums

  20. Budgets and Mill Levies • Be prepared to change • ND Legislature meets biannually • Online resources are available to everyone • Be familiar with your budget and levy requirements • Ask questions. There is a wealth of information in the North Dakota county network. We all continue to learn together.

More Related