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Item #08 Set Proposed Tentative Millage Rate for Fiscal Year 2015/2016 BudgetContact Name: Contact Number: 0 CaPP florida AGENDA ITEM COVER SHEET Meeting Date: July 21, 2015 Robert Frank X1500 Item # g Reviewed By. Department Director: City Manager: Subject: Set Proposed Tentative Millage Rate for Fiscal Year 2015/2016 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 provides 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, 7.6082, is an increase of the current year millage (5.6371). The rolled back rate for 2015/2016 is 5.4091. This rate is lower than the current year rate. The City's overall assessed value increased $135,801,248. This is an increase of $742,559 at the current millage rate of 5.6371. The Commission can set the proposed millage for FY15/16 up to 8.3690 with a super majority vote by the Commission. This millage rate would generate $15,823,019 in ad valorem revenues. A millage rate higher than the 8.3690 would require a unanimous vote by the Commission. Recommendations Staff recommends the commission set the proposed tentative millage at 6.5000. 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 7.6082 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 2015/2016 budget Type of Item: (please mark with an Y) 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 () o N/A 2 City of Ocoee Ad Valorem Revenue Calculations 2015/2016 Budget FY 15/16 Rolled Current Rate back rate Super FY 14/15 (majority vote) (majority vote) Majority vote Majority vote 5.6371 5.6371 5.4091 7.6082 8.3690 Ad Valorem Revenues (97 %) 9,915,338 10,657,897 10,226,824 14,384,597 15,823,019 Difference from current year budget 742,559 Difference from current millage rate (FY 14/15) (431,073) 3,726,700 5,165,122