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HomeMy WebLinkAboutItem #13 Set the Tentative Millage Rate for Fiscal Year 2014/2015 Budget1 4 kS N �1� 0C0(->e fIorida AGENDA ITEM COVER SHEET Meeting Date: July 15, 2014 Item # Contact Name: Contact Number Robert Frank X1500 Reviewed By: Department Director: City Manager: Subject: Set Proposed Tentative Millage Rate for Fiscal Year 2014/2015 Budget Background Summary: The TRIM act requires local governing bodies to set a month of July. The property appraiser is then notified proposed tax levies for the next year. The rate can be and has historically been done so by the City. Issue: proposed tentative millage rate annually during the of the rate and uses it to advise taxpayers of their lowered during the budget hearings in September State Statutes establish levels of approval by the governing body in setting the millage rate. The statutes provides for a maximum millage that can be levied by the governing body with a majority vote. This maximum millage rate requiring a majority vote for the upcoming fiscal year of 7.7496 is an increase of the current year millage (5.7855). The rolled back rate for 2014/2015 is 5.5337. This rate is lower than the current year rate. The City's overall assessed value increased $145,274,229. This is an increase of $815,270 at the current millage rate of 5.7855. The Commission can set the proposed millage for FY13/14 up to 8.5246 with a super majority vote by the Commission. This millage rate would generate $15,038,522 in ad valorem revenues. A millage rate higher than the 8.5246 would require a unanimous vote by the Commission. The proposed budget is currently balanced at 5.7855 mils which is the same as the current year rate. This rate is higher than the rolled back rate for FY 14/15. Recommendations Staff recommends the commission set the proposed tentative millage at 5.7855 (current year millage rate). This is a tentative rate and will allow the commission room to adjust during review and discussion 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 7.7496 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 the rate to determine ad valorem proceeds to include as revenue in the FY 2014/2015 budget Type of Item: (please mark with an "x') Public Hearing Ordinance First Reading Ordinance Second Reading Resolution Commission Approval Discussion & Direction For Clerk's Dept Use: Consent Agenda Public Hearing Regular Agenda 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 () N/A 2 City of Ocoee Ad Valorem Revenue Calculations 2014/2015 Budget FY 14/15 Rolled Current Rate back rate Super Majority vote 8.5246 FY 13/14 (majority vote) (majority vote) Majority vote 5.7855 5.7855 5.5337 7.7496 Ad Valorem Revenues (97 %) 9,391,118 Difference from current year budget Difference from current millage rate (FY 13/14) 10,206,387 9,762,179 13,671,319 15,038,522 815,270 (444,209) 3 4,832,135