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HomeMy WebLinkAboutItem 08 Approval for Proposed Tentative Millage Rate for Fiscal Year 2023-2024 BudgetMeeting Date: July 18, 2023 Item #: 8 Contact Name: Ruth Hovanec Department Director: Rebecca Roberts Contact Number: Ext. 1525 City Manager: Robert Frank 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 as has historically been done 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, 6.9091, is an increase over the current year millage (4.9500). The rolled back rate for 2023/2024 is 4.568. This rate is lower than the current year rate. The City's overall assessed value increased by $387,837,936. This is an increase of $1,823,808 at the current millage rate of 4.9500. The Commission can set the proposed millage for FY 2023/2024 up to 7.6 with a super majority vote by the Commission. This millage rate would generate $32,485,029 in ad valorem revenues. A millage rate higher than the 7.6 would require a unanimous vote by the Commission. Recommendations: Staff recommends the commission set the proposed tentative millage at 4.9500 mils. This is a tentative rate and will allow the commission room to adjust during review and discussion of the proposed budget. The commission can set the proposed rate in September at or below this rate. Should the commission wish to set the proposed tentative millage rate higher than 7.6, it can do so; however, it would require a super majority vote. Attachments: 1. Milage Rate Calculation City of Ocoee Bluford AvenueOcoee, Florida 34761 Phone:(4 91 0i • •e- • • Page 81 of 199 Financial Impacts: This will provide the rate to determine ad valorem proceeds to include as revenue in the FY 2023/2024 budget. Type of Item: Consent City of Ocoee - 1 N. Bluford Avenue - Ocoee, Florida 34761 Phone: (407) 905-3100 - www.ocoee.org Page 82 of 199 City of Ocoee AdValorem Revenue Calculations 2023/20248udget FYB/24Rolled Current Rate Proposed Rate back rate Super Majority 22/23 (majority vote) (majority vote) (majority vote) Majority vote vote 4.95 4.95 4.e500 4.568 6.9091 7.6 AdValorem Revenues (95%) 19'334`304 I1'158,012 21,158'01I 19'525'I12 29'531'883 3I'485'0I9 Difference from current year budget 1'823'808 1'823'808 Difference from current miUagerate (FY2I/23) (1'632'800) 8']7]'871 11'327,017 Difference from proposed miUaQerate (Fv23/24) (1'632'000) 8'373'871 11'327,017 Gross Taxable Value (23/24) Gross Taxable Value (22/23) 4,488311,485 4`111,473,548 A Change inTaxable Value 387.037.936 8.43%^ ~ ~ ~$ 3,988 ~ 1 $ 3,988,050~ lValue, of 1 mil CRAIncrement Value (2O/21) AdVCRA ~ 1.417.105 ~ 1,417.105 ~ 1.307.800 ~ 1.978.048 ~ 2.175.850 901,364261 Page 83 of 199