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HomeMy WebLinkAboutItem #14 Set Proposed Tentative Millage Rate for Fiscal Year 2012/2013 Budget be C of Good L O - • 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