HomeMy WebLinkAboutItem #14 Set Proposed Tentative Millage Rate for Fiscal Year 2012/2013 Budget be C of Good L
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AGENDA ITEM COVER SHEET
Meeting Date: July 17, 2012
Item #
Reviewed By:
Contact Name: Robert Frank Department Director:
Contact Number: 1500 City Manager:
Aglik
Subject: Set Proposed Tentative Miliage Rated for Fiscal Year 2012/2013 Budget
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. This rate can be lowered during the budget hearings in September
and has historically been done so by the City.
Issue:
State Statutes establish levels of approval by the governing body in setting the millage rate. The statutes
provides for a maximum millage than can be levied by the governing body with a majority vote. This
maximum millage rate for the upcoming fiscal year, 7.6037, is an increase of the current year millage (5.8460).
The rolled back rate for 2012/2013 is 6.1304. This rate is higher than the current year rate due to the decrease
in assessed property value again this year. The City's assessed value decreased $49,924,714. This is a
reduction of $283,104 at the current millage rate of 5.8460.
The City can set the proposed millage for FY12/13 up to 8.3641 with a super majority vote by the Commission.
This millage rate would generate $ 13,459,092 in ad valorem revenues. A millage rate higher than the 8.3461
would require a unanimous vote by the Commission.
The proposed budget is currently balanced at 5.8460 which is the same rate as FY 11/12. This millage rate
is Tess than the rolled back rate.
Recommendations
Staff recommends the commission set the proposed tentative millage rate between 7.6037 (majority action rate)
and 6.1304 (rolled back rate). This is a tentative rate and will allow the commission room to adjust during
review 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 7.6037 it can do so, however
it would require a super majority vote.
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 2012/2013 budget year.
Public Hearing For Clerk's Dept Use:
Ordinance First Reading Consent Agenda
Ordinance Second Reading Public Hearing
Resolution Regular Agenda
Commission Approval
Discussion & Direction
Original Document/Contract Attached for Execution by City Clerk
Original Document/Contract Held by Department for Execution
Reviewed by City Attorney N/A
Reviewed by Finance Dept. N/A
Reviewed by 0 N /A'
2
City of Ocoee
Ad Valorem Revenue Calculations
2012/2013 Budget
FY 12/13 Rolled
Current Rate back rate Super
FY 11/12 (majority vote) (majority vote) Majority vote Majority vote
5.8460 5.8460 6.1304 7.6037 8.3641
Ad Valorem Revenues (97 %) 9,690,196 9,407,091 9,864,734 12,235,495 13,459,092
Difference from current year
budget (283,104)
Difference from current millage
rate (FY 11/12) 457,642 2,828,403 4,052,001