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Item #18 Setting the Proposed Tentative Millage Rate for FY2012 be Center of Good ejlso 0 ge AGENDA ITEM COVER SHEET Meeting Date: July 19, 2011 Item # Reviewed By: Contact Name: Robert Frank Department Director: Contact Number: 1501 City Manager: Subject: Setting Proposed Tentative Millage Rate for FY 11/12 Budget Year 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: HB -1 establishes levels of approval by the governing body in setting the millage rate. This bill provides for a maximum millage rate that can be levied by the governing body with a majority vote. This maximum millage rate for the upcoming fiscal year, 6.9239, is an increase of the current year millage (5.5574). The rolled back rate for 2011/2012 is 5.9455. This rate is higher than the current year rate due to the decrease in assessed property value. The City's assessed value decreased $93,150,960. This is a reduction of $ 502,147 at the current millage rate of 5.5574. The City can set the proposed millage for FY 11/12 up to 7.6163 with a super majority vote by the Commission. This millage rate would generate $12,660,812 in ad valorem revenues. A millage rate higher than the 7.6163 would require a unanimous vote by the Commission. The proposed budget is currently balanced at 5.7900. This millage rate is less than the rolled back rate Recommendations Staff recommends the commission set the proposed tentative millage rate at 6.9239 via majority action. This is a tentative rate and will allow the commission to review the proposed budget and set the millage at or below the rolled -back rate in September. Should the commission wish to set the proposed tentative millage rate higher than 6.9239 it can do so, however it would require a super majority vote. Attachments: Attached to this staff report is a chart of the revenue amounts generated at the various millage levels compared to the budgeted amount for this fiscal year. Financial Impact: This will provide funding for the FY 2011/2012 budget year. Type of Item: (please mark with an `x') Public Hearing For Clerk's Dept Use: Ordinance First Reading Consent Agenda Ordinance Second Reading Public Hearing Resolution Regular Agenda Commission Approval Discussion & Direction Original Document/Contract Attached for Execution by City Clerk Original Document/Contract Held by Department for Execution Reviewed by City Attorney N/A Reviewed by Finance Dept.) / ' 1 N/A Reviewed by 0 N/A 2 * ■ a s. k \ CO el CL p-$ 0 co cc co o @o t.: k 2 2 n 2 # > ■ Q f Z. 2 q co o \ CO Q c o MI 4=, 4.1 2 /I -8 0 > k 7 $ 22� 2 Skm — na © co 7 ,r- .0 e \2/ ■ ƒ/ 6 E3 eRI as \ CC >n. q / c k = < ■o � q 0 J § o 1.0 %- ci > 2 h. 0) . % C > = k k / c k o ƒ [ § 2 8 a),- To ( I 0 / ¢, f 2 < 2 = 5 @