Ocoee sets tentative millage rate

The tentative millage rate for the upcoming fiscal year is set at 5.75 mils, but it is expected to be lowered later in the budget process.

By Eric Gutierrez
| 3:01 p.m. July 17, 2019

West Orange Times & Observer
News

The budget process for the upcoming fiscal year has begun in Ocoee.

City leaders voted during the July 16 City Commission meeting to set the proposed tentative millage rate for Fiscal Year 2019-20 at 5.75. Commissioners also voted to set budget workshops for 6 p.m. Aug. 8 and 14 and set budget hearings for 6 p.m. Sept. 11 and 25.

IN OTHER NEWS

District 44 State Representative Geraldine Thompson gave a presentation about this year’s legislative session.
Commissioners came to a consensus to rename a city park after former longtime Ocoee Mayor Scott Vandergrift. The consensus came after Vandergrift’s daughter and grandson spoke before the commission to request the city to name a park or public building after Vandergrift to honor his years of dedication and service to the city. Vandergrift’s family suggested renaming Central Park after him because his family has a long history with that park.
City leaders voted 4-1 to approve a contract in the amount of $365,000 with ZHA, Inc. for owner’s representative services for the construction of the new Ocoee City Hall. ZHA, Inc. will provide professional construction management services related to the construction project. Commissioner George Oliver was the dissenting vote.
The commission also voted to approve the second reading of a substantial change ordinance that amends the land-use plan and subdivision plan for five tracts of land owned by Orange County Public Schools within Ocoee Crown Point Planned Unit Development. The five tracts total about 37.46 acres within Ocoee Crown Point PUD, which totals approximately 360 acres in North Ocoee. Parts of the Ocoee Crown Point PUD is already developed or currently under development and includes Ocoee High School as well as residential neighborhoods and shopping centers. The ordinance approved by the commission allows for townhomes to be built on the five tracts. Here are the changes that were made to the five tracts: Change the land use of tract 13 from bus depot/townhome to workforce education/ townhomes; change the land use of tract 41 from OCPS Stormwater to workforce education/townhomes; change the land use of tracts 7A and 7B from workforce education to workforce education/townhomes; change the land use of tract 34 from right-of-way to workforce education/townhomes.

The current millage rate is 5.5. With a tentative millage rate set at 5.75, commissioners can set the millage rate for the upcoming fiscal year at that rate or below it. At the start of the budget process, the commission typically sets a tentative millage rate higher than what the final rate will end up being, City Manager Robert Frank said.

“Historically, in the past probably 10 or 15 years, we’ve set this (tentative millage rate) higher just to give the commission all kinds of leeway when we actually work on the budget,” Smith said. “We actually looked at what kind of flexibility we would need this year, and instead of (setting a tentative rate at) 6.5, which we’ve done for years and years, we figured we’d bring it down to 5.75. … We just left a little flexibility if there’s additional things you wanted to leave in there.”

City documents show the current millage rate of 5.5 generates $15,951,221 in ad valorem revenues. A millage rate of 5.75 would generate $16,676,276 in ad valorem revenues.

Frank said that he’s planning to present a budget balanced at 5.5 mills or lower, and he expects the commission to lower the millage rate for the upcoming fiscal year.

Mayor Rusty Johnson said the city has been able to lower the millage rate over the last few years because of recent economic development.

“This is what we’ve tried to do the last three years,” Johnson said. “We’ve lowered the tax base … because economic development is happening in the city and we can afford to do that. This helps the citizens out.”