Fort Walton Beach Council agenda — 09-19-2007 special agenda — reading text

TYOFFORTWALTONBEACH City Council Special Meeting Agenda September 19, 2007 - 5:30 P.M. City Council Chambers 107 Miracle Strip Parkway, SE Fort Walton Beach, FL 32548 CALL TO ORDER PLEDGE OF ALLEGIANCE - Mayor Mike Anderson i... , 1. . PU~~ lq, H.;,~BJ.N~ A~ gNg~ 1. Consideration of a Resolution ( 07- 21) setting the final millage rate for the City of Fort Walton Beach, Florida, for fiscal year beginning October 1, 2007 and ending September 30, 2008, and providing for an effective date. ( City Manager) (See Backup) 2. Consideration of an Ordinance ( 1740) of the City of Fort Walton Beach making appropriations for certain expenditures, expenses, capital improvements and certain indebtedness of the City of Fort Walton Beach, Florida, for the year beginning October 1, 2007 and ending September 30, 2008, and providing for an effective date. ( 2nd reading) ( City Manager) ( See Backup) ADJOURN will Any person who decides to appeal any decision made with respect to any matter at this meeting need a record of the and for such need to ensure that a verbatim record proceedings, purpose may of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. (FS286. 0105). The City of Fort Walton Beach adheres to the American with Disabilities Act and will make reasonable modifications for access to this meeting upon request. Please call City Clerk Helen 850-833- Spencer at 850-833- 9509 to make a request. For Hearing Impaired dial the City Hall TOO # 9 9925 or 1- 800-955-8771 ( TOO) or 1- 800- 55- 8770 ( Voice). Requests must be received at least 48 hours in advance of the meeting in order to allow the City time to provide requested service.  CITY OF FORT WALTON BEACH Memorandum TO: Joyce Shanahan, City Manager FROM: Charlotte Dunworth, Budget & Grants Manager RE: 0fi) Millage Rate for FY 2007- 08 DATE: September 12, 2007 BackQround Chapter 200 " Determination of Millage" of the Florida Statutes sets a statutory timetable for the calculation and notification to the public of the process to set ad valorem tax rates and millage adopt a budget. The statute identifies the time frames and briefly describes the tasks to be accomplished during those time frames. According to the Department of Revenue, the City shall calculate the rollback rate and within 80 days from when the Property Appraiser certifies the value of real property in the City of Fort Walton Beach and hold a pUblic hearing on the proposed millage and tentative budget. The City' s real property value was certified on June 28, 2007, and therefore a public hearing must be held no later than September 16, 2007. Discussion According to the Okaloosa County Property Appraiser, the preliminary 2007 gross taxable property value is $ 1,485, 863,467, representing an increase of $ 130, 504, 815 or 9. 6% over the 2006 final gross taxable property value of $1, 355, 358,652. The roll- backmillage rate is defined as the millage rate that would produce the same amount of ad valorem tax revenue as was levied during the prior year, exclusive of new construction, deletions, and boundary changes. Staff has calculated the roll- back rate to be 4.4196 mills, which would generate revenues of $ 6, 238, 576 ( at a 95% collection rate) - an increase of 3. 6% or $ 219, 392. Property tax reform passed by the Florida Legislature in June 2007 requires that the City' s millage rate not exceed 95% of the roll- back rate unless adopted by a vote greater than simple majority of the governing body. This millage rate of 4. 1986 would generate revenues of $ 5, 926, 619 ( at a 95% collection rate) - a net decrease of 1. 5% or $ 92, 565. Ad valorem revenues in the General Fund would decrease 2.4% or $ 125, 752 and ad valorem revenues in the CRA Fund would increase 3.4% of $33, 187. 2007- 08 2007- 08 Variance from Millage Ad Valorem Maintaining Current Variance from Method of Adoction Millaae Descriction Rate Revenue Mil/ace of 4. 6458 2006- 07 Revenues Majority vote of Roll- back rate at 4. 1986 $ 5, 926, 619 <$ 631, 254> <$ 92, 565> governing body percentage cap Two- thirds vote of Roll- back rate 4.4196 $ 6, 238. 576 <$ 319,297> $ 219,392 governing body Unanimous vote of Prior year mil/age rate 4. 6458 $ 6, 557,873 $ 0$ 538, 689 governing body Rate higher than ? Voter referendum 4. 6459 prior year The Florida League of Cities has advised that any revenues attributed to a supermajority vote in 2007- 08 are backed out of the rollback calculation in future years. Therefore, if a local government anticipates keeping these additional funds as recurring revenues, it will be expected to reapprove by a supermajority vote. The supermajority override is limited to an amount not to exceed 10 percent more than the revenue generated by the rolled- back rate in future years. A unanimous vote or a referendum can provide a rate that is higher than the 10 percent increase. Staff interprets this information to mean that unless Council 1 of 2  our millage to continues to have a supermajority vote each year, at some point we will have to reduce 95% of the FY 2007- 08 roll- back rate adjusted for personal income. the Legislature' s The FY 2007- 08 budget is prepared at a millage rate of 4. 1986, which complies with mandate that the City' millage s rate not exceed 95% of the roll- back rate of 4. 4 196 unless adopted by a the A millage rate of 4. 1986 is 9. 6% lower than the vote greater than simple majority of governing body. the appropriation from prior year rate of 4. 6458. This millage rate reduction was achieved by increasing undesignated fund balance in the General Fund. Staff recommends setting the final ad valorem millage rate at 4. 1986, which will produce approximately 5, 926,619 ( at a 95% collection rate) - a net decrease of 1. 5% or $ 92, 565 in ad valorem tax revenues. Recommendation final millage rate at Staff respectfully requests that City Council adopt Resolution 2007- 21, which sets the of Revenue 4. 1986 mills for fiscal year October 1, 2007 through September 30, 2008. As the Department requires specific language and procedures, the following is proposed: Beach, Florida for 1. Resolution 2007- 21 will adopt the final millage rate for the City of Fort Walton 30, 2008 and provides for an effective date. Fiscal Year October 1, 2007 through September 2. Mayor shall open the Public Hearing and ask for comments. 3. Mayor shall close the Public Hearing. rate of 4. 1986 mills for fiscal 4. Mayor shall ask for a Motion as follows: Move to adopt the final millage 30, 2008 on second reading. year beginning October 1, 2007 and ending September 5. Mayor shall ask for Council discussion. 6. Mayor shall ask for Vote. 7. Upon passage of the motion, the Mayor shall announce: fiscal year beginning The Final Millage Rate for the City of Fort Walton Beach is 4. 1986 mills for the 30, 2008 and is 5. 0% below the rollback rate of 4.4196 mills. October 1, 2007 and ending September decrease in taxes. The for setting the millage The 5. 0% decrease is the percentage property purpose October 1, rate at 4. 1986 mills is to fund expenses of the General Fund for the fiscal year beginning 2007 and ending September 30, 2008. Concur oncur Do Not Concur Do Not Concur Hold for Discussion Hold for Discussion Lisa Attachments: DR-420 Certificate of Taxable Value Script for Public Hearing - Final Millage Resolution 2007- 21 u: lbudgetlbudget Or-QSlbudget hearing - septemberl9- 19 millage staff report. doc 2 of 2  Page 1 of 1 Charlotte Dunworth A