Adopted FY 2016 - 2017 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 2016, the City set its millage rate at 3.1201. Because taxable values have grown higher for fiscal year 2017, the rolled back rate calculates to be a little lower. For fiscal year 2017 the rolled back rate is 2.8949 mills. The following table shows the difference in what the City would levy for fiscal year 2017 at the proposed millage rate as compared to the rolled back rate. This is a gross levy and differs from the net collections used for budgeting. 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 2015 per capita income grew at a rate of 3.75%. That is the increment applicable to fiscal year 2017 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. The table below shows the difference between rolled back rate and one that was set with the PCI as the standard for growth. For fiscal year 2017 PCI as a growth standard would add $131,717 to the levy. During the last several 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 in recent years, the adjusted rolled -back rate is now much higher. The Adopted Budget has been prepared so that the millage rate remains at 3.1201 mills and provides $3,666,915 which is 97% of the gross levy. The levy would increase over fiscal year 2016 because of the growth in overall taxable values but less than PCI would suggest. The value growth is known to be derived not just from ordinary appreciation of continuously owned properties but significantly from realized gains as new taxpayers purchase properties at higher values and invest in Casselberry with new construction that adds to the total of all property owners subject to City property taxes. page 17