How the Preliminary Millage Rate Impacts Property Tax by MichaelChoate

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									        How the Preliminary Millage Rate Impacts Property Tax

At the July 22nd Special City Commission Meeting, the Oakland Park City Commission voted
to approve the Preliminary Ad Valorem Millage Rate of 5.9848 for Fiscal Year ( FY) 2010.

It is an effective upper limit for the FY 2010 Millage Rate to be considered by the City
Commission at the Public Hearing on the Tentative Budget and Millage Rate scheduled for
September 9, 2009. The City Commission will continue to evaluate possible ways in which to
reduce the Budget and Millage Rate before final adoption on September 16, 2009.

This Preliminary Millage Rate of 5.9848 helps close approximately $2.3 million of a projected
$8.3 million budget gap the City would face were it to maintain the same service and staffing
levels under the FY 2009 Millage Rate.

At the same meeting, the City Commission accepted the recommendation to hold the annual
residential Fire Assessment fee at $149 for the fourth consecutive year and maintain the
monthly Stormwater Fee at $6.

The FY 2010 Preliminary Property Tax Millage Rate increase to 5.9848 is a direct result of the
14.1% reduction in the City’s tax base and will generate $15.8 million in property tax revenue
for Fiscal Year 2010 (comparable to FY 2009 and $400,000 less than FY 2008).

The 14.1% reduction in the City’s tax base due to the economic turmoil follows the additional
$25,000 homestead exemption and the “Portability of Save Our Homes” Amendment that
Florida passed in 2008. The City’s total Governmental Funds revenue would drop to $40.2
million in FY 2010 (from $40.4 million in FY 2009 and $42.5 million in FY 2008).

Under this Tentative Property Tax Millage Rate (excluding properties sold in FY 08):
•            60% would have a City property tax bill increase (an average of $46)
•            31% would have a City property tax bill decrease (an average of $167)
•            5% (only partially covered by Save Our Home) would have a greater increase
•            4% would see no change in City property tax bill

Overall, the average homesteaded property in Oakland Park would pay $11 less in City
property taxes next year at the preliminary Millage Rate of 5.9848.

For the median home valued at $110,000 (homesteaded with Save Our Home), the proposed
City property tax would be $361.

The preliminary recommended FY 2010 Budget is available on-line at www.oaklandparkfl.org

								
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