HomeMy WebLinkAboutItem 06 Approval of Proposed Tentative Millage Rate for FY 2025-2026
City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761
Phone: (407) 905-3100 ▪ www.ocoee.org
STAFF REPORT
Meeting Date: July 15, 2025
Item #: 6
Contact Name: Vanna Lawitzke Department Director: Vanna Lawitzke
Contact Number: Ext. 1518 City Manager: Craig Shadrix
Subject: Approval of Proposed Tentative Millage Rate for Fiscal Year 2025–2026 Budget.
(Acting Finance Director Lawitzke)
Background Summary:
From 2018 to 2024, the taxable value of all properties in the city increased by an average of 12% annually.
However, the effects of a recessionary economy resulted in two consecutive years of substantially slower
growth. For fiscal year 2026, it rose by only 8%, falling short of keeping pace with inflationary pressures on the
City’s operating budget.
The TRIM Act requires local governing bodies to establish a proposed tentative millage rate each July. This
rate is then submitted to the property appraiser, who uses it to inform taxpayers of their estimated property tax
levies for the upcoming year. The millage rate may be reduced during the September budget hearings, a
practice the City has traditionally followed.
Issue: The City must consider setting a tentative millage rate to ensure financial stability amid rising costs
and economic uncertainty. State statutes define the levels of approval required for adopting a millage rate and
permit the governing body to approve a maximum rate of 7.1100 mills with a majority vote. This represents an
increase from the current rate of 4.9500 mills.
For Fiscal Year 2025/2026, the rolled-back millage rate is 4.6898 mills. This rate is lower than the current
millage and would not generate enough revenue to sustain existing service levels. The City’s total assessed
property value has increased to $5,433,608,250. To support the general fund, staff are proposing a tentative
millage rate of 5.500 mills, which is projected to generate approximately $28,390,603 in ad valorem revenue.
This increase is necessitated by the impacts of the 2024 Amendment 4 referendum, which significantly altered
the property tax landscape, along with shrinking revenues and escalating costs associated with delivering core
municipal services. Failure to adopt this rate or pass the proposed increase to the fire protection assessment
would directly jeopardize the City's ability to sustain critical operations.
The Commission may set the proposed millage rate for fiscal year 2025/2026 at up to 7.1100 with a super
majority vote. At this rate, the City would generate approximately $36,701,307 in ad valorem revenue. Any
millage rate above 7.1100 would require a unanimous vote of the Commission.
City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761
Phone: (407) 905-3100 ▪ www.ocoee.org
Recommendations:
Staff recommends that the Honorable Mayor and City Commissioners set the proposed tentative millage rate
at 5.5000 mills. Establishing this rate provides the Commission with flexibility to make adjustments during the
review and discussion of the proposed budget. In September, the Commission may adopt a final millage rate
at or below this tentative rate.
Attachments:
None
Financial Impacts:
This rate will be used to calculate the ad valorem revenue to be included in the Fiscal Year 2025/2026 budget.
Type of Item: Consent