Item 06 Approval to Set the Proposed Tentative Millage Rate for Fiscal Year 2021/2022 Budget ocoee
florida
AGENDA ITEM COVER SHEET
Meeting Date: July 20, 2021
Item # 1p
Reviewed By:
Contact Name: Robert Frank Department Director:
Contact Number: X1500 City Manager:
Subject: Set Proposed Tentative Millage Rate for Fiscal Year 2021/2022 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. 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, 7.1534, is an increase over the current year millage (5.1500). The rolled back
rate for 2021/2022 is 4.9879. This rate is lower than the current year rate. The City's overall assessed value
increased by $268,334,929. This is an increase of$1,381,925 at the current millage rate of 5.1500.
The Commission can set the proposed millage for FY2020/2021 up to 7.8687 with a super majority vote by the
Commission. This millage rate would generate $28,389,893 in ad valorem revenues. A millage rate higher than
the 7.8687 would require a unanimous vote by the Commission.
Recommendations:
Staff recommends the commission set the proposed tentative millage at 5.1500 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 7.1534 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. The amounts reflected in the chart are adjusted to a collection rate
of 95%.
Financial Impact:
This will provide the rate to determine ad valorem proceeds to include as revenue in the FY 2020/2021 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
x 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
C1 nn .
Reviewed by () N/A
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City of Ocoee
Ad Valorem Revenue Calculations
2021/2022 Budget
FY 21/22 Rolled
Current Rate Proposed Rate back rate Super Majority
20/21 (majority vote) (majority vote) (majority vote) Majority vote vote
5.15 5.15 5.1500 4.9879 7.1534 7.8687
Ad Valorem Revenues(95%) 16,683,058 17,651,906 17,651,906 17,096,299 24,518,668 28,389,893
Difference from current year budget 968,848 1,312,829
Difference from current millage rate(FY20/21) - (555,607) 6,866,763 10,737,987
Difference from proposed millage rate(FY21/22) (555,607) 6,866,763 10,737,987
Gross Taxable Value(21/22)
3,607,952,096
Gross Taxable Value(20/21)
3,339,617,167 0
Change in Taxable Value 268,334,929 8.03% *
Value of 1 mil * $ 3,235,584 * $ 3,235,584 * $ 3,235,584 * $ 3,235,584 * $ 3,415,982
CRA Increment Value(20/21) AdV CRA * 988,648 * 988,648 * 957,530 * 1,373,242 * 1,510,558
202,074,214
Est Ad Valorem non-CRA * 16,663,258 * 16,663,258 * 16,138,769 * 23,145,426 * 26,879,334