Item 04 Approval to Set the Proposed Tentative Millage Rate for Fiscal Year 2019/2020 Budget oc_oee
florida
AGENDA ITEM COVER SHEET
Meeting Date: July 16, 2019
Item # 0
Reviewed By:
Contact Name: Robert Frank Department Director: Rebecca Ro er0)
Contact Number: X1500 City Manager:
Subject: Set Proposed Tentative Millage Rate for Fiscal Year 2019/2020 B get
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. The 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
provide for a maximum millage that can be levied by the governing body with a majority vote. This maximum
millage rate for the upcoming fiscal year, 7.0119, is an increase over the current year millage (5.5000). The
rolled back rate for 2019/2020 is 5.1551. This rate is lower than the current year rate. The City's overall
assessed value increased by $363,430,110. This is an increase of $1,949,586 at the current millage rate of
5.5000.
The Commission can set the proposed millage for FY2019/2020 up to 7.7131 with a super majority vote by the
Commission. This millage rate would generate $22,369,702 in ad valorem revenues. A millage rate higher
than the 7.7131 would require a unanimous vote by the Commission.
Recommendations
Staff recommends the commission set the proposed tentative millage at 5.7500 mils. 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 7.0119 it can do so, however it would require a super majority
vote tonight.
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 2019/2020 budget
Type of Item: (please mark with an `x')
Public Hearing For Clerk's Dept Use:
Ordinance First Reading x 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. jt-2. p,d N/A
Reviewed by () N/A
2
City of Ocoee
Ad Valorem Revenue Calculations
2019/2020 Budget
FY 19/20 Rolled
Current Rate Proposed Rate back rate Super Majority
18/19 (majority vote) (majority vote) (majority vote) Majority vote vote
5.5 5.5 5.7500 5.1551 7.0119 7.7131
Ad Valorem Revenues(97%) 15,951,221 15,951,221 16,676,276 14,950,934 20,336,066 22,369,702
Difference from current year budget 1,949,586 2,038,203
Difference from current millage rate(FY18/19) (1,000,287) 4,384,846 6,418,481
Difference from proposed millage rate(FY19/20) (1,725,342) 3,659,790 5,693,426
Gross Taxable Value(19/20)
* 2,989,919,494
Gross Taxable Value(18/19)
* 2,624,486,384 0
* Change in Taxable Value 365,433,110 13.92% *
Value of 1 mil * $ 2,763,192 * $ 2,763,192 * $ 2,763,192 * $ 2,763,192 * $ 2,763,192
CRA Increment Value(18/19) AdV CRA * 753,664 * 787,921 * 706,402 * 960,839 * 1,056,924
* 144,241,858
Est Ad Valorem non-CRA * 15,197,557 * 15,888,355 * 14,244,532 * 19,375,227 * 21,312,777