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HomeMy WebLinkAboutItem 04 Approval to Set the Proposed Tentative Millage Rate for Fiscal Year 2020/2021 Budget ocoee florida AGENDA ITEM COVER SHEET Meeting Date: July 21, 2020 Item # 'y Reviewed By: Contact Name: Robert Frank Department Director: -b-c ;,J �b� • Contact Number: X1500 City Manager: /���1��.�- Subject: Set Proposed Tentative Millage Rate for Fiscal Year 2020/2021 Budget Background Summary: The TRIM act requires local governing bodies to set a proposed tentative millage rate annually during the month of July. The property appraiser is then notified of the rate and uses it to advise taxpayers of their proposed tax levies for the next year. The rate can be lowered during the budget hearings in September and has historically been done so by the City. Issue: State Statutes establish levels of approval by the governing body in setting the millage rate. The statutes provide for a maximum millage that can be levied by the governing body with a majority vote. This maximum millage rate for the upcoming fiscal year, 6.9836, is an increase over the current year millage (5.2500). The rolled back rate for 2020/2021 is 5.0108. This rate is lower than the current year rate. The City's overall assessed value increased by$354,109,033. This is an increase of$1,452,640 at the current millage rate of 5.2500. The Commission can set the proposed millage for FY2020/2021 up to 7.682 with a super majority vote by the Commission. This millage rate would generate $24,372,192 in ad valorem revenues. A millage rate higher than the 7.682 would require a unanimous vote by the Commission. Recommendations: Staff recommends the commission set the proposed tentative millage at 5.5000 mils. This is a tentative rate and will allow the commission room to adjust during review and discussion of the proposed budget. The commission can set the proposed rate in September at or below this rate. Should the commission wish to set the proposed tentative millage rate higher than 6.9836 it can do so, however it would require a super majority vote tonight. Attachments: Attached to this staff report is a chart of the revenue amounts generated at the various millage levels compared to the budgeted amount for this fiscal year. Financial Impact: This will provide the rate to determine ad valorem proceeds to include as revenue in the FY 2020/2021 budget Type of Item: (please mark with an "x") Public Hearing For Clerk's Dept Use: Ordinance First Reading x Consent Agenda Ordinance Second Reading Public Hearing Resolution Regular Agenda x Commission Approval Discussion& Direction Original Document/Contract Attached for Execution by City Clerk Original Document/Contract Held by Department for Execution Reviewed by City Attorney N/A Reviewed by Finance Dept. DslA, c7, N/A Reviewed by Q N/A 2 1,361,011 Majority 7,715,8526,922,692 vote 23,011,181 24,372,192 Super $ 2,995,467 *** vote 1,237,276 5,500,0824,706,923 20,919,147 22,156,423 $ 2,995,467 *** 0 vote)Majority Rolled 887,758 rate (758,895) 15,009,688 (1,552,054) 15,897,446 Ў͵ЉЊЉБЏ͵ВБЌЏА͵ЏБЋ back 20/21 (majority FY $ 2,995,467 *** Rate vote) 974,429 1,521,814 16,475,071 17,449,50015,927,686 Ў͵ЎЉЉЉ Proposed (majority $ 2,995,467 Calculations *** * Budget Ocoee of vote) Rate Revenue 930,136 City 15,726,204 16,656,34115,203,700 2020/2021 Current (majority Valorem $ 2,995,467 Ad ** CRA* AdV Ў͵ЋЎЎ͵ЋЎ 19/20 354,109,033 11.86% 186,493,506 (FY20/21) 3,339,617,1672,985,508,134 (FY19/20)793,159 rate rate budget1,452,640 millage yearmillage (97%)14,890,222 (20/21)(19/20) Value proposed currentcurrent ValueValue Revenues from fromfrom Taxable in TaxableTaxable Valorem Difference AdDifferenceDifferenceGrossGrossChange Value of 1 milCRA Increment Value (20/21)Est Ad Valorem non-CRA