AGENDA MEMORANDUM

Meeting Date: July 28, 2008

From:                          Jerry Boop, Finance Director, CPA, CGFO

Subject:                      Resolution authorizing the City Manager to execute and submit the Certification of Taxable Value for Fiscal Year 2008-09 to the Lake County Property Appraiser.

Staff Recommendation:

Staff recommends authorizing the City Manager to execute and submit the Certification of Taxable Value for Fiscal Year 2008-09 to the Lake County Property Appraiser, establishing the proposed operating millage rate at 4.3179 mills

Analysis:

In an effort to facilitate taxpayer relief, the citizens of Florida on January 29, 2008, approved Amendment 1 providing for reduction in property taxes levied by various governmental entities including municipal governments.  Relief was primarily granted by placing restrictions on the ability of local governments to increase the millage rate and by granting a $25,000 increase in the Homestead Exemption for certain properties. 

In the 2008-09 tax year, a municipality may levy a maximum millage rate determined as follows:

(a) The maximum millage rate that may be levied shall be the rolled back rate calculated pursuant to s. 200.065 and adjusted for growth in per capita Florida personal income, except that ad valorem tax revenue levied in the 2007-08 fiscal year shall be reduced by any tax revenue resulting from a millage rate approved by a super majority vote of the governing board of the taxing authority in excess of the maximum rate that could have been levied by a majority vote.  This year’s proposed operating millage rate of 4.3179 mills takes into consideration this reduction.  Last year by a supermajority vote the City of Leesburg approved an operating millage rate of 4.31 mills.

Proposed Millage Rate before reduction                      4.6115

Percentage adjustment to majority vote rolled

back rate for impact of amendment 1                          93.633%

Majority vote maximum millage rate allowed              4.3179

                        Current year proposed taxes at 4.3179 mills         $6,646,067

                        (Budget is proposed at 95% or $6,313,764)               

(b) A rate of not more than 110 percent of the rate in paragraph (a) may be levied if approved by a two-thirds vote of the governing body. 

Proposed Millage Rate before reduction                      4.6115

Maximum percentage                                                  110.00%

                        Two-thirds vote maximum                                          5.0727

(c) A rate in excess of the millage rate allowed in paragraph (b) may be levied if approved by a unanimous vote of the governing body or by a three-fourths vote if the governing body has nine or more members or if approved by a referendum of the voters.

A municipality that is in violation of this section shall forfeit the distribution of the local government half-cent sales tax revenues during the 12 months following a determination of non-compliance by the Department of Revenue subject to the conditions provided in ss. 200.065 and 218.63.  The Department of Revenue has reviewed and approved the forms and all calculations provided to you by your Finance Staff.

The City of Leesburg has three options available for adoption:

1. By a majority vote the Commission may adopt a maximum millage rate equal to the current year rolled back rate adjusted by compound annual growth factors of 4.3179 mills or $6,646,067
2. By a two-thirds vote of the governing body the Commission may adopt a maximum millage rate up to 5.0727 mills or $7,807,847
3. By unanimous vote a rate greater than 5.0727 mills but not to exceed nine (9) mills

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 4, 2008. By signature of the City Manager, the City will notify the property appraiser of the following:

· The Certification of Taxable Value reflecting the majority vote maximum millage rate allowed of 4.3179 mills per $1,000 for 2008-09

· The Tax Increment Adjustment Worksheet for the Greater Leesburg, Carver Heights and Highway 27/441 CRA’s for  2008-09

· The Municipality Maximum Millage Levy Calculation Preliminary Disclosure reflecting the calculation for the current year proposed operating millage rate of 4.3179.

The public hearing to consider the current year proposed operating millage rate and tentative budgets is scheduled for Thursday, September 11, 2008 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 4.3179 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 $6,646,067 or $6,313,764.

Options:

1.  Authorize the City Manager to execute and submit the Certification of Taxable Value, reflecting the proposed operating millage rate of 4.3179 mills per $1,000, the Tax Increment Adjustment Worksheet and the Municipality Maximum Millage Levy Calculation Preliminary Disclosure for Fiscal Year 2008-09 to the Lake County Property Appraiser; or

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

Please see Analysis above.

Submission Date and Time:    7/25/2008 3:49 PM____

Department: ______________________ Prepared by:  ______________________                      Attachments:         Yes____   No ______ Advertised:   ____Not Required ______ Dates:   __________________________                      Attorney Review :       Yes___  No ____ _________________________________            Revised 6/10/04

Reviewed by: Dept. Head ________ Finance  Dept. __________JB______                                    Deputy C.M. ___________________                                          Submitted by: City Manager ___________________

Account No. _________________ Project No. ___________________ WF No. ______________________ Budget  ______________________ Available _____________________

RESOLUTION NO._______________

A RESOLUTION OF THE CITY OF LEESBURG, FLORIDA, AUTHORIZING THE CITY MANAGER TO EXECUTE AND SUBMIT THE CERTIFICATE OF TAXABLE VALUE FOR FISCAL YEAR 2008-09 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 City Manager is  hereby authorized to execute the “Certificate of Taxable Value for Fiscal Year 2008-09” and submit the same 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 28th day of July 2008.

                                                                            __________________________

                                                                             Mayor

ATTEST:

__________________________

City Clerk