CITY COUNCIL AGENDA ITEM
Memo Date: August 22, 2023
Agenda Date: September 12, 2023
Prepared By: Lora Howell, Deputy Finance Director
Through: Rebecca Bowman, MBA, CGFO, CGFM, Finance Director and Stockton Whitten, City Manager
Requested Action:
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Conduct a Public Hearing on the Tentative Millage Rate and Tentative FY24 Budget and:
Adopt Resolution No. 2023-093 adopting a tentative millage rate of 6.9532 mills, for the City of Cocoa, commencing on October 1, 2023 and ending on September 30, 2024.
Adopt Resolution No. 2023-094 adopting the FY2024 tentative budget and CIP for the City of Cocoa Fiscal Year, commencing on October 1, 2023 and ending on September 30, 2024.
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BACKGROUND:
On July 25, 2023, the City Council approved Resolution 2023-078 establishing the rolled-back millage rate of 5.8285 and a proposed millage rate of 6.9532 mills, which represents an increase of 19.3% over the rolled-back rate and is characterized as the percentage increase in property taxes tentatively adopted by the City Council pursuant with section 200.065(2)(c), Florida Statutes.
The proposed millage rate of 6.9532 mills for Fiscal Year (FY) 2024 is an increase of 7.7% over the adopted FY 2023 millage rate of 6.4532 mills. The City Council set the date, time and place of the Public Hearing to consider the Final Millage Rate and the FY 2024 Final Budget as September 26, 2023, at 65 Stone Street, Cocoa, Fl. 32922 at 6:00p.m at the July 25, 2023 Council meeting.
Pursuant with section 200.065, Florida Statutes, the City Council must conduct a public hearing on the proposed millage rate and tentative budget within 65-80 days of certification of taxable value to the property appraiser. A second hearing is required 97-100 days after certification to adopt the final millage rate and budget. During each of these hearings, the law requires that “the first substantive issue discussed shall be the percentage increase in millage over the rolled-back rate necessary to fund the budget, if any, and the specific purposes for which ad valorem tax revenues are being increased.” During such discussion, the City Council shall hear comments regarding the proposed increase and the City will explain the reasons for the proposed increase over the rolled-back rate. Further, section 200.065, Florida Statutes, also requires the City Council to adopt the tentative millage rate prior to adopting the tentative budget
STRATEGIC PLAN CONNECTION:
To provide transparency during the TRIM (Truth in Millage) and Budget process for accountability to the taxpayers of the City of Cocoa. Through the strategic planning process, the City committed to develop a financially sustainable revenue base to support and deliver high quality municipal services. A financial analysis provided by the consulting firm of Stantec indicated the need for the City to maintain its current millage rate, as one of the many recommendations, to place the City on a path of fiscal sustainability over the next five to ten years.
BUDGETARY IMPACT:
The City budgeted 95% of the gross ad valorem revenue of $11,202,138 for FY 2024, which equals $10,642,032. This results in a net increase of $2,203,462 in ad valorem revenue over the FY 2023 budget of $8,438,570.
Total FY 2024 Budget, All Funds: $168,949,095
PREVIOUS ACTION:
July 25, 2023, Resolution 2023-078 established the rolled back millage rate, adopted a Proposed Millage Rate, and set the date, time, and place of the first Public Hearing to consider the Tentative FY 2024 Budget and Tentative Millage rate.
RECOMMENDED MOTION:
Recommendation
Conduct a Public Hearing on the tentative millage rate and tentative budget and:
Adopt Resolution No. 2023-093 adopting a tentative millage rate of 6.9532 mills, for the City of Cocoa, commencing on October 1, 2023 and ending on September 30, 2024.
Adopt Resolution No. 2023-094 adopting the FY2024 tentative budget and CIP for the City of Cocoa Fiscal Year, commencing on October 1, 2023 and ending on September 30, 2024.