Approve operating millage rate at 4.0923 mills and debt service millage rate at 0.1263 for the General Obligation Bonds, Series 2011, and 0.3025 for the General Obligation Bonds (Library/Events Center), Series 2017, respectively. 

The proposed FY 2021 General Fund budget was prepared assuming the operating millage rate would be kept at its current level of 4.0923 mills.  Because property valuations increased, the proposed property tax levy represents a 3.58% increase from FY 2020. The city’s tax rate has been held constant for the last 12 years and the overall combined millage rate will decrease due to the reduction in the debt service millage.

A tentative operating millage rate of 4.5623 was approved by the City Commission on July 22. This rate sets the maximum level at which the Commission could set the millage rate during the budget approval process without having to undergo an extensive noticing process. All property owners received a Notice of Proposed Property Taxes from the Orange County Property Appraiser in August that was based on the tentative rate.  This notice also advised property owners of this first public hearing on millage rates and the budget. 

The rolled-back rate, represents the millage rate that would generate the same level of property tax collection revenue as the prior year, excepting growth due to an inflation factor and new construction. The rolled back rate would be 3.9509 mills.

Below is a table of the implications to the General Fund of adjustments to the millage rate:

Any reduction in projected property tax revenues would require a corresponding reduction in General Fund budget appropriations.

With the existing property tax rate, the city has a contingency of $745k to weather impacts from this uncertain revenue environment and to allocate to needs/projects as they arise. No fiscal impact unless the Commission chooses to change the operating millage rate from the 4.0923 mills level. Every 0.25 of a mill generates approximately $1.6 million in annual property tax revenue.