HomeMy WebLinkAboutItem 08 Approval of Proposed Tentative Millage Rate for Fiscal Year 2026-2027 Budget
City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761
Phone: (407) 905-3100 ▪ www.ocoee.org
STAFF REPORT
Meeting Date: July 21, 2026
Item #: 8
Contact Name: Steven Weber Department Director: Steven Weber
Contact Number: Ext. 1520 City Manager: Craig Shadrix
Subject: Approval of Proposed Tentative Millage Rate for Fiscal Year 2026-2027
Budget. (Finance Director Weber)
Background Summary:
Effective June 24, 2026, Senate Bill 4-F revises the calculation for determining the maximum millage rate that
a county, municipality, special district, or municipal service taxing unit may levy.
Section 2 of SB 4-F, amends subsection 200.065(5), Florida Statutes, to remove a calculation of the current
year's maximum millage rate based on the prior year's taxes and maximum millage rate and removes the
option to levy the adopted rate from the prior year, if higher. The amendment provides that the maximum
millage rate that may be levied is the rolled-back rate computed under 200.065(1), F.S. A taxing authority may
adopt a millage rate of up to 110 percent of the rolled-back rate by a two-thirds vote of the membership of the
governing body. A taxing authority may adopt a millage rate exceeding 110 percent of the rolled-back rate by a
unanimous vote of the membership of the governing body.
The City must consider setting a tentative millage rate to ensure financial stability amid rising costs and
economic uncertainty. For Fiscal Year 2026/2027, the rolled-back millage rate is 4.8111 mills. This rate is
lower than the current millage and would not generate enough revenue to sustain existing service levels. State
statutes define the levels of approval required for adopting a millage rate and permit the governing body to
approve a maximum rate of 5.2922 mills (110% of the rolled-back rate) with a two-thirds vote. This represents
an increase from the current rate of 4.9500 mills.
From 2018 to 2025, the taxable value of all properties in the City increased by an average of 11.8%
annually. For fiscal year 2027, the taxable values rose by only 8.6% to $5,859,466,089. To support the
general fund, staff are proposing a tentative millage rate of 5.2922 mills, which is projected to generate
approximately $31,009,466 in revenue.
Issue:
Should the Honorable Mayor and City Commission set the proposed tentative millage rate at 5.2922 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 will adopt the final millage rate.
Recommendations:
Staff recommends that the Honorable Mayor and City Commission set the proposed tentative millage rate at
5.2922 mills.
City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761
Phone: (407) 905-3100 ▪ www.ocoee.org
Attachments:
None
Financial Impacts:
This rate will be used to calculate the ad valorem revenue to be included in the Fiscal Year 2026-2027 budget.
Type of Item: Consent