Staff recommends authorizing the Interim City Manager to execute and submit the Certification of Taxable Value for Fiscal Year 2007-08 to the Lake County Property Appraiser, establishing the proposed operating millage rate at 4.01 mills
In an effort to facilitate taxpayer relief, the Florida Legislature passed legislation providing for reduction in property taxes levied by various governmental entities including municipal governments. The legislation generally requires cities to adopt a millage rate that reduces ad valorem proceeds by 0% to 9%, depending on their taxing history. Leesburg falls in the 7% category. This number is then adjusted for growth, which means the actual reduction in proceeds may be substantially less than the initial required reduction (the 7%). The reason the legislature did this is because a city experiencing, for example, 7% growth, that had to reduce ad valorem revenues by a flat 7% from the previous year, would actually feel a 14% reduction (because of the added service burden of the growth). That reduction does not factor in inflation, which would further increase the burden.
In Leesburg’s case, our growth was substantial, and our ad valorem proceeds will actually grow - even with the 7% reduction. This year’s (’06-’07) proceeds are approximately $5.5M, whereas the proceeds for next year will be $6.3M under the State’s new formula. Had the State done nothing (or if the Commission adopts the current 4.50 mill levy by unanimous vote), the proceeds next year would have been $7.1M.
The City of Leesburg has 4 options available for adoption:
1. By a majority vote of the governing body the Commission may adopt a maximum millage rate equal to the current year rolled back rate adjusted by compound annual growth factors of 4.01 mills or $6,322,393
2. By a two-thirds vote of the governing body the Commission may adopt a maximum millage rate equal to the current year rolled back rate of 4.31 mills or $6,795,390
3. By a unanimous vote of the governing body the Commission may adopt a maximum millage rate equal to the prior year’s operating millage rate of 4.50 mills or $7,094,955
4. By referendum the maximum millage rate as approved by referendum or resolution
Under State Law, the Commission is required to notify the property appraiser of a proposed millage rate before completion of the budget process. This proposed rate may be reduced, but may not be increased with subsequent action by the Commission. .
The attached forms must be filed with Lake County no later than Friday, August 3, 2007. By signature of the Interim City Manager, the City will notify the property appraiser of the following:
· The Certification of Taxable Value reflecting the current year rolled-back millage rate of 4.31 and the proposed operating millage rate of 4.01 per $1,000 for 2007-08
· The Tax Increment Adjustment Worksheet for the Greater Leesburg, Carver Heights and Highway 27/441 CRA’s for 2007-08
· The Municipality Maximum Millage Levy Calculation Preliminary Disclosure reflecting the calculation for the current year proposed operating millage rate of 4.01.
The public hearing to consider the current year proposed operating millage rate and tentative budgets is scheduled for Thursday, September 13, 2007 at 5:05 p.m. in the Commission Room.
The draft budget to be submitted to the commission currently reflects the proposed operating millage rate of 4.01 mills. In order to allow for margin and the possibility of deficient collections, the City budgets Ad Valorem Revenues at 95% of the expected collections of $6,322,393 or $6,006,273.
1. Authorize the Interim City Manager to execute and submit the Certification of Taxable Value, reflecting the proposed operating millage rate of 4.01 mills per $1,000, the Tax Increment Adjustment Worksheet and the Municipality Maximum Millage Levy Calculation Preliminary Disclosure for Fiscal Year 2007-08 to the Lake County Property Appraiser; or
2. Such alternative action as the Commission may deem appropriate
Please see Analysis above.
Prepared by: ______________________
Attachments: Yes____ No ______
Advertised: ____Not Required ______
Attorney Review : Yes___ No ____
Reviewed by: Dept. Head ________
Finance Dept. __________________
Deputy C.M. ___________________
City Manager ___________________
Account No. _________________
Project No. ___________________
WF No. ______________________
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AUTHORIZING THE INTERIM CITY MANAGER TO EXECUTE THE CERTIFICATION OF TAXABLE VALUE, THE TAX INCREMENT ADJUSTMENT WORKSHEET AND THE MUNICIPALITY MAXIMUM MILLAGE LEVY CALCULATION PRELIMINARY DISCLOSURE FOR FISCAL YEAR 2007-08 AND SUBMIT TO THE LAKE COUNTY PROPERTY APPRAISER; AND PROVIDING AN EFFECTIVE DATE.
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
THAT the Interim City Manager is herby authorized to execute the “Certification of Taxable Value, the Tax Increment Adjustment Worksheet and the Municipality Maximum Millage Levy Calculation Preliminary Disclosure For Fiscal Year 2007-08” and submit to the Lake County Property Appraiser.
THAT this resolution shall become effective immediately.
PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the 23th day of July 2007.