Adopted FY 2014 - 2015 Budget - Laserfiche WebLink

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The Department of Revenue requires that the City report its "rolled -back rate" for millage to determine what rate (when applied to the new year) would cause a tax levy in approximately the same amount as the year before. For Fiscal Year 2014 the City set its millage rate at 5.4500. Because taxable values have grown higher for Fiscal Year 2015, the rolled -back rate calculates to be lower. For Fiscal Year 2015 the rolled -back rate is 5.2840 mills. The following table shows the difference in what the City would LEVY for Fiscal Year 2015 if it does not lower its millage rate to rolled -back. This is a gross levy and differs from the net collections used for budgeting. Note: Due to nuances in the calculation of rolled -back rate and the existence of CRAB, a levy based on the Fiscal Year 2015 rolled- back rate would actually be lower than the levy in Fiscal Year 2014 by $20,918. Fiscal Year 2015 Millage Prior Year Rate 5.4500, Rollback 5.2840, Variance 0.1660 Fiscal Year 2015 Revenues (net) $5,962,145 Rollback $5,780,546 Variance $181,599 Since the passage of "Property Tax Reform", the Florida legislature has sought to limit the growth in the property tax levy. It has been highly scrutinized and controlled. Keeping pace with what the law allows, the levy cannot easily grow from one year to another faster than the rolled -back rate. The levy under State statute is allowed to grow with the rate of per capita income (PCI) for Florida citizens. For 2013 per capita income grew at a rate of 3.15%. That is the increment applicable to Fiscal Year 2015 that a city may raise its millage above the roll -back rate with a simple majority vote and grow the levy at a rate Floridians can presumably afford. By coincidence the calculated rolled -back millage rate with PCI growth (5.4504) is almost the same as the proposed millage rate for Fiscal Year 2015 (5.4500). The table below shows the difference between rolled -back rate and one that was set with the PCI as the standard for growth. Fiscal Year 2015 Millage Rollback w/PCI 5.4504, Rollback 5.2840, Variance 0.1664 Fiscal Year 2015 Revenues (net) Rollback w/PCI $5,962,583 Rollback $5,780,546 Variance $182,037 During the last few years, as property values plummeted, the City did not set its levy according to PCI or even to rolled -back. Casselberry held its millage rate at 5.45 mills while its levy fell 35%. The Florida legislature allows credit for past reduction in tax levies. It requires the calculation each year of an "Adjusted Current Year Rolled-back Rate" to set the limit on how high a levy may be with a simple majority vote. Given the City's responsible behavior, the adjusted rolled-back rate is now 7.4376 mills for Fiscal Year 2015. With a simple majority vote the City Commission is empowered to use the maximum millage of 7.4376 to raise the levy an additional $2,174,379. Fiscal Year 2014 Millage Adjusted Rollback w/PCI 7.4376, Requested 5.4500, Variance 1.9876 Fiscal Year 2014 Revenues (net) Adjusted Rollback w/PCI $8,136,524 Requested $5,962,145 Variance $2,174,379 The adopted budget has been prepared so that the millage rate continues at 5.45 mills and provides $5,782,150, which is 97% of the gross tax levy. The levy would increase over fiscal year 2014, made possible by the growth in overall taxable values. The value growth is known to be derived not just from passive appreciation but significantly from realized gains as new taxpayers invest in Casselberry. The increase is right at PCI of 3.15% and is needed to compensate for other revenue sources that have not shown sufficient growth during this recovery. page 17