CC Minutes 07/26/2010 - Laserfiche WebLink

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CASSI;LBI'iRRY CITY COMMISSION Minutes or July 26, 2010 -Regular Meeting Page 3 of 14 decorum. The following individuals came forward: 1) Ml•. John Casselberry, 700 South Lost Lake Lane, voiced concerns about the possibility of raising the millage rate, and suggested Seminole County should isolate the Sheriff's millage similar to the method Lrtilized by Volusia County. 2) Mr. Alva "Ed" Bowman, 286 Lake Griffin Circle, spoke in opposition to raising the millage rate to 5.99 mills. No one else came forward. Mayor Glancy closed the Citizens' Comments portion of the meeting. 12. B. Tentative Tax Rate fol• Fiscal Year 2010/2011 Staff Presentation: Mr. Randy Newlon, Finance Director, stated pursuant to "TRIM" legislation, the City Commission is required to set the proposed millage rate for Fiscal Year 2011 by August 4, 2010. The tentative tax rate approved by the City Commission cannot be increased, but can be decreased as part of the final budget adoption. The City Commission has set September 13, 2010 for the first public hearing on the FY 2011 Budget and millage rate and September 27, 2010 for final adoption. The City Commission at its Budget Warkshop on July 13, 2010 reached a consensus to select 5.9990 as the tentative millage rate, as long as the funds provided by the additional 0.549 mills, were separated into a dedicated fund to pay for investments in the community and would not be utilized to pay for ordinary costs or salaries. This millage falls below the "roll back" rate of 6.1696 mills, which would make the levy roughly the same as FY 2010. At 5.9990, the FY 2011 levy would be $310,486 less than the tax levy for the previous year. This would mark the second year of decline in the property tax levy. Mr. Newlon further stated that by selecting 5.9990 mills, the City would collect $598,652 in revenue above what the FY 2010 millage rate of 5.450 mills would yield. Guidance was previously given by the City Commission that the FY 2010 millage rate of 5.45 mills could not be raised in FY 2011 to pay for ordinary costs or salaries. The fields provided by the additional 0.549 mills, if adopted, would be separated into a dedicated fund and appropriated by the City Commission to pay for investments in the community. The proposed tentative tax rate requires a simple majority vote of the City Commission and will be advertised as a decrease because it is below the rollback rate to FY 2010. A copy of the memorandum associated with this agenda item is attached to and made a part of these minutes. Budget Impact: The millage rate of 5.9990 mills will produce a tax levy of $6,885,855 in property taxes but will yield only $6,541,562 (95%) that will be collected by the City after early payer discounts and billing and collection costs. If adopted in September, the revenue produced by the levy will affect the budget for FY 2011. If the tentative rate of 5.9990 mills is approved, there will be $598,652 separated and restricted to pay for investments in the community. Recommendation: The City Manager and the Finance Director recornrnended approval to set the tentative tax rate for FY 2011 as required by the "TRIM" legislation at 5.9990 mills.