Fort Walton Beach Ordinance — 1740 Adopt Budget FY07-08 — reading text

City of Fort Walton Beach, FL 39- Revenues PROPERTY TAX REFORM To lower the property tax burden on Floridians, legislation was passed during Special Session in June that requires counties, municipalities, and special taxing districts to reduce property tax revenue collections to a designated percentage below the roll- back rate ( the rate that would generate the same amount of tax revenue) based on taxing behavior over the past five years measured against a statewide average. Based on Fort Walton Beach' s compound annual growth rate of 8. 79% from 2001 to 2006, the City' s millage ( tax) rate may not exceed 95% of the roll- back rate according to the legislation. In addition to the required reduction for FY 2007- 08, a cap on future property tax revenues ( based on the rate of personal income growth and new construction) is imposed by this statutory change. Taxable Assessed Value Year Citywide Incr General Fund % Incr CRA Fund Incr 2007 1,485, 863,467 9. 6% 1, 235,763, 671 8. 3% 250, 099, 796 17. 0% 2006 1, 355, 358, 652 23.3% 1, 141, 564,410 21. 7% 213,794,242 32.4% 2005 1, 099, 663, 741 19. 8% 938,212, 640 15.9% 161,451, 101 48. 9% 2004 917, 979,449 6. 3% 809, 554, 532 4. 1% 108,424, 917 26. 7% 2003 863, 630, 650 3. 9% 778, 029, 165 3.4% 85, 601,485 8. 6% 2002 831, 018, 054 3. 7% 752,203,910 2. 9% 78,814, 144 12. 1% 2001 801,494, 995 6. 3% 731, 194, 053 5. 2% 70,300,942 18. 8% 2000 754, 237,271 3. 8% 695, 069,317 4. 2% 59, 167,954 1.4% Ad Valorem Revenue FY Citywide Incr General Fund % Incr CRA Fund Incr 2008 5, 926, 619 1. 5% 4, 929,053 - 2. 5% 997,566 3.4% 2007 6,019, 184 14.3% 5,054, 805 12. 2% 964, 379 26.5% 2006 5,266, 359 19. 7% 4, 504,067 15. 7% 762,292 50. 2% 2005 4,401, 319 6. 0% 3, 893, 817 3. 9% 507,502 25.6% 2004 4, 150,628 5. 6% 3, 746,461 5. 3% 404, 167 8.6% 2003 3, 930,901 2.4% 3, 558, 801 1.4% 372, 100 12. 1% 2002 3, 840,016 7. 7% 3, 508,091 6. 7% 331, 925 18. 8% 2001 3, 566,831 3. 8% 3, 287,470 1. 9% 279, 361 31. 6% 2000 3,437, 555 3. 6% 3,225,267 3. 9% 212, 288 0. 3% Staff has prepared a budget based on a mil/age rate of 4. 1986, a decrease of 9. 7%. Compared to maintaining the FY 2006- 07 millage rate of 4.6458, the FY 2007- 08 millage rate of 4. 1986 results in 631, 254 less revenue. However, in comparison to FY 2006- 07 ad valorem revenues, the FY 2007- 08 ad valorem' revenue decrease is $ 92, 565 or 1. 5%. This overall percentage decrease is less than the legislative 5% reduction ( which is exclusive of new construction) due to continuous redevelopment downtown in the Community Redevelopment Area. The purpose of designating a CRA is to eliminate slum and blight and the property tax reform legislation does not penalize jurisdictions for growth in the CRA. . EXEMPTIONS Florida' s current homestead exemption limits the annual increase in taxable value of a citizen' s primary residence to 3% or the Consumer Price Index, whichever is lower. Consequently, the City's revenues do not increase in proportion to assessed value increases for homesteaded properties. Sixty-six percent of residential parcels are homesteaded, claiming $ 125. 7 million in exemptions. Furthermore, three percent claim an additional $ 25, 000 senior citizen exemption adopted by the City in 1999, resulting in an additional $ 6. 6 million in exemptions. Combined, these exemptions translate to about $ 615,000 less revenue annually for the City. In May 2007 City Council increased the senior citizen exemption to 50, 000, as permitted by a Constitutional amendment approved statewide by voters in November 2006. In addition to the tax rate roll- back and cap enacted via a change to the Florida Statutes, the Legislature has proposed a Constitutional amendment to replace the current " Save our Homes" homestead exemption with a . Super Homestead" exemption. Voters will decide in January 2008 if they prefer the current homestead exemption of $ 25, 000 with an annual property value increase equal to the Consumer Price Index or 3% ( whichever is less) or a super homestead exemption with 75% of the first $ 200, 000 of taxable value exempted and 15% of the next $ 300, 000 in taxable value exempted, but with no protection City of Fort Walton Beach, FL 40-