HomeMy WebLinkAboutItem 05 Approval of Proposed Tentative Millage Rate for Fiscal Year 2024-2025 Budget
City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761
Phone: (407) 905-3100 ▪ www.ocoee.org
STAFF REPORT
Meeting Date: July 16, 2024
Item #: 5
Contact Name: Rebecca Roberts Department Director: Rebecca Roberts
Contact Number: Ext. 1520 City Manager: Robert Frank
Subject: Approval of Proposed Tentative Millage Rate for Fiscal Year 2024-2025 Budget.
(Finance Director Roberts)
Background Summary:
Over the past five (5) years, the taxable value of all properties within the city has grown by an average of
11.4% annually. However, due to the effects of a recessionary economy, the taxable value for FY25 grew by
only 6%. This represents only a $1.3 Million increase in revenues, which is out of pace with the effects of
inflation on the City's operating budget.
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, 7.7342, is an increase over the current year millage (4.9500). The
rolled back rate for 2023/2024 is 4.6577. This rate is lower than the current year rate. The City’s overall
assessed value increased by $4,882,801,002. This is an increase of $1,355,862 (6%) at the current millage
rate of 4.9500.
The Commission can set the proposed millage for FY 2024/2025 up to 7.7342 with a super majority vote by
the Commission. This millage rate would generate $35,876,332 in ad valorem revenues. A millage rate
higher than the 7.7342 would require a unanimous vote by the Commission.
Recommendations:
Staff recommends the Honorable Mayor and City Commission set the proposed tentative millage at
4.9500 mils. This tentative rate will allow the commission room to adjust during the 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 7.7342, it can do so; however, it
would require a super-majority vote.
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City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761
Phone: (407) 905-3100 ▪ www.ocoee.org
Attachments:
None
Financial Impacts:
This will provide the rate to determine ad valorem proceeds to include as revenue in the FY 2024/2025
budget.
Type of Item: Consent
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