HomeMy WebLinkAboutItem #07 Set Proposed Millage Rate for Budget Year 08/09
AGENDA ITEM COVER SHEET
Meeting Date: July 15, 2008
Item # 7
Contact Name:
Contact Number:
Robert Frank
1501
Reviewed By:
Department Director:
City Manager:
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Subject: Setting Proposed Millage Rate for FY 08/09 Budget Year
Background Summary:
The TRIM Act requires local governing bodies to set a proposed 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. This rate can be lowered during the budget hearings in September.
Issue:
The state legislature passed HB-1 last year. The law establishes levels of approval by the governing body in
setting the millage rate. This bill provides for a maximum millage rate that can be levied by the governing body
with a maioritv vote. This maximum millage rate for the upcoming fiscal year, 4.2568, is a reduction of the
current year millage (4.2919). The rolled back rate for 2008/2009 is 4.7371. This rate is higher than the
current year rate due to the decrease in assessed property value resulting from Amendment 1, namely, the
additional $25,000 homestead exemption. The county property appraiser's office calculated the impact to the
assessed value to be a decrease of $213,117,459. This equates to $914,679 at the current millage rate of
4.2919.
The City can set the proposed millage for FY 08/09 up to 5.1457 with a super maioritv vote by the
Commission. A millage rate higher than the 5.1457 would require a unanimous vote by the Commission.
The proposed budget is currently balanced at 4.5775.
Recommendations
The commission set the proposed millage rate at 5.1457 via super majority action. This is a tentative rate and
will allow the commission to review the proposed budget and increase the millage for additional funding if
desired.
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 funding for the FY 2008/2009 budget year.
Type of Item: (please mark with an "x')
_ Public Hearing
_ Ordinance First Reading
Ordinance Second Reading
For Clerk's Deat Use:
_____ Consent Agenda
Public Hearing
Resolution
Commission Approval
Discussion & Direction
Regular Agenda
Original DocumenUContract Attached for Execution by City Clerk
Original DocumenUContract Held by Department for Execution
Reviewed by City Attorney
Reviewed by Finance Dept.
Reviewed by 0
N/A
N/A
N/A
2
Ad Valorem Revenues FY 08/09
Certificate of Taxable Value from the Property Appraiser
Budget Tax Revenues
Variance to Budget
Majority Vote = 4.2568 or lower
Super Majority = 4.2569 - 5.1457
Unaminous = 5.1458 - 10.0000
Majority Vote Super Majority Super Majority
Current Rollback Rate
4.2919 4.2568 4.5775 4.7371 5.1457
9,224,758 9,149,316 9,838,610 10,181,645 11,059,866
(613,852) (689,294) 0 343,035 1,221,256
FY 08/09
Budget
9,838,610