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Home My WebLink AboutAgenda Packet CC - 08/06/2018 - Special Called Meeting 2006 HERITAGE WALK, MILTON, GA 30004 ǀ 678.242.2500 ǀ WWW.CITYOFMILTONGA.US Persons needing special accommodations in order to participate in any City meeting should call 678.242.2500. Joe Lockwood, Mayor CITY COUNCIL Peyton Jamison Matt Kunz Laura Bentley Joe Longoria Rick Mohrig CITY COUNCIL CHAMBERS City Hall Monday, August 6, 2018 Special Called Meeting Agenda 9:00 AM 1) CALL TO ORDER 2) ROLL CALL 3) PLEDGE OF ALLEGIANCE (Led by Mayor Joe Lockwood) 4) APPROVAL OF MEETING AGENDA (Add or remove items from the agenda) (Agenda Item No. 18-217) 5) PUBLIC COMMENT (GENERAL) MILTON CITY COUNCIL SPECIAL CALLED MEETING AUGUST 6, 2018 Page 2 of 2 Persons needing special accommodations in order to participate in any City meeting should call 678.242.2500. 6) FIRST PRESENTATION 1. Consideration of an Ordinance of the Mayor and Council of the City of Milton, Georgia, to Establish the Ad Valorem Tax Rate of the City of Milton for Fiscal Year 2019; and for Other Purposes. (Agenda Item No. 18-218) (Bernadette Harvill, Finance Director) 7) PUBLIC HEARING 1. Consideration of an Ordinance of the Mayor and Council of the City of Milton, Georgia, to Establish the Ad Valorem Tax Rate of the City of Milton for Fiscal Year 2019; and for Other Purposes. (First Presentation at August 6, 2018 Special Called City Council Meeting) (Agenda Item No. 18-218) (Bernadette Harvill, Finance Director) 8) NEW BUSINESS (If necessary) 9) ADJOURNMENT (Agenda Item No. 18-219) 9 TO: FROM: MILTON'it ESTABLISHED 2006 CITY COUNCIL AGENDA ITEM City Council DATE: July 31, 2018 Steven Krokoff, City Manager AGENDA ITEM: Consideration of an Ordinance of the Mayor and Council of the City of Milton, Georgia, to Establish the Ad Valorem Tax Rate of the City of Milton for Fiscal Year 2019; and for Other Purposes. MEETING DATE: Monday, August 6, 2018 Special Called City Council Meeting BACKGROUND INFORMATION: (Attach additional pages if necessary) See attached memorandum APPROVAL BY CITY MANAGER: (.KAPPROVED (J NOT APPROVED CITY ATTORNEY APPROVAL REQUIRED: () YES (-,f"'NO CITY ATTORNEY REVIEW REQUIRED: () YES (/NO APPROVAL BY CITY ATTORNEY: () APPROVED (J NOT APPROVED PLACED ON AGENDA FOR: v6lcf,/20"Q 2006 Heritage Walk Milton, GA P: 678.242.2500 1 F: 678.242.2499 info@cityofmiltonga.us I www.cityofmiltonga.us 0000 To: Honorable Mayor and City Council Members From: Bernadette Harvill, Finance Director Date: Submitted on July 31, 2018 for the August 6, 2018 Special Called City Council Meeting (First Presentation) and August 13, 2018 Special Called City Council Meeting (Unfinished Business) Agenda Item: Consideration of an Ordinance of the Mayor and Council of the City of Milton, Georgia, to Establish the Ad Valorem Tax Rate of the City of Milton for Fiscal Year 2019; and for Other Purposes. Department Recommendation: Adopt the ordinance as presented to establish the ad valorem tax rate of the City of Milton for the 2019 fiscal year. Executive Summary: We are proposing a maintenance and operating millage rate of 4.731 mills, which is the same rate we’ve had each year since the City’s incorporation. We are also proposing a bond millage rate of 0.706 mills for the General Obligation Bond, Series 2017 that was approved through referendum on the November 2016 ballot. This will cover the second year of debt service payments totaling $1,709,375. (Please note, the initial bond payments were interest only. This year and each subsequent year will include principal and interest payments and total roughly $1.7 million; therefore, the bond millage rate will fluctuate accordingly.) The tax digest for 2019 is showing taxable assessments for real and personal property at $2,831,269,530, net of exemptions. This represents an increase of 17.37% over the 2017 digest due to reassessments of existing real property. Motor vehicle assessed values in 2018 are $26,535,480 and have decreased by 30% since 2017. This decline is a result of House Bill 386, which is phasing out motor vehicle taxes (or the “birthday tax”) and replacing it with the title ad valorem tax. The TAVT is a one -time title fee that is paid on all vehicle sales. It is not a property tax and is, therefore, not included in the tax digest. Funding and Fiscal Impact: The total amount of property taxes to be levied for maintenance and operating purposes, excluding motor vehicle tax, is roughly $13.4 million. The FY19 budget anticipates $12,021,176, or 90% of the levied taxes. Historically, we’ve experienced a collection rate of 90%-94% of real property by the due date. A slightly more conservative anticipation of 85% was used for the bond millage rate calculation as the debt service due is a fixed cost that cannot be amended/altered. Alternatives: None. Legal Review: Not required. Concurrent Review: Steve Krokoff, City Manager Incorporated City of Milton 2013 2014 2015 2016 2017*2018* Real & Personal 1,991,826,430 2,156,608,276 2,332,989,792 2,435,683,451 2,522,451,452 3,026,274,150 Motor Vehicle 125,271,430 110,057,590 80,438,520 55,613,700 38,158,500 26,535,480 Mobile Homes 0 0 0 0 0 0 Timber – 100%0 0 0 0 0 0 Heavy Duty Equipment 0 0 0 0 104,009 0 Gross Digest 2,117,097,860 2,266,665,866 2,413,428,312 2,491,297,151 2,560,713,961 3,052,809,630 Less M & O Exemptions 162,615,270 154,175,700 174,457,350 163,773,480 169,616,430 195,004,620 Net M & O Digest 1,954,482,590 2,112,490,166 2,238,970,962 2,327,523,671 2,391,097,531 2,857,805,010 Gross M & O Millage Rate 6.804 6.742 8.374 8.342 8.244 7.758 Less Millage Rate Rollbacks (LOST)2.073 2.011 3.643 3.611 3.513 3.027 Net M & O Millage Rate 4.731 4.731 4.731 4.731 4.731 4.731 Bond Millage Rate 0 0 0 0 0.321 0.706 Total City Millage Rate 4.731 4.731 4.731 4.731 5.052 5.437 M&O Taxes Levied 9,246,657 9,994,191 10,592,572 11,011,514 11,312,282 13,520,276 Bond Taxes Levied 0 0 0 0 0 2,017,610 Total City Taxes Levied 9,246,657 9,994,191 10,592,572 11,011,514 11,312,282 15,537,886 Net M&O Taxes $ Increase (14,410)747,534 598,381 418,943 300,768 2,207,993 Net M&O Taxes % Increase -0.2%8.1%6.0%4.0%2.7%19.5% House Bill 710, passed during the 2018 legislative session, allows Milton residents to vote on a November referendum that provides for a new homestead exemption designed to address the significant property tax increases seen recently, as well as limit future property assessment increases. If approved by Milton voters, the measure would take effect next year and would substantially eliminate the increase in property taxes caused by the sudden spike in tax assessments. The table above notes a 19.50% increase which is based on an estimated digest produced prior to the final deadline to submit appeals and therefore may change. All figures are based upon a 100% collection rate. CITY OF MILTON NOTICE The City of Milton does hereby announce that the millage rate will be set at a meeting to be held at City Hall Council Chambers, 2006 Heritage Walk, Milton, Georgia on August 13, 2018 at 5:45 PM and pursuant to the requirements of O.C.G.A § 48-5-32 does hereby publish the following presentation of the current year’s tax digest and levy, along with the history of the tax digest and levy for the past five years. Current 2018 Tax Digest and Five Year History of Levy *Estimated Digest Figures for Tax Years 2017 & 2018 Page 1 of 2 STATE OF GEORGIA ORDINANCE NO. COUNTY OF FULTON AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE CITY OF MILTON, GEORGIA, TO ESTABLISH THE AD VALOREM TAX RATE OF THE CITY OF MILTON FOR FISCAL YEAR 2019; AND FOR OTHER PURPOSES WHEREAS, the Charter of the City of Milton, Georgia authorizes the City to levy and provide for the assessment of ad valorem property taxes on all property subject to taxation; and WHEREAS, the Charter of the City of Milton, Georgia provides that the valuation of all property subject to taxation by the City shall be determined according to the tax digest prepared by the Fulton County Board of Tax Assessors; and WHEREAS, the Mayor and City Council, after hearing and after duly considering all such relevant evidence, testimony and public comments, has determined that it is in the best interests of, and necessary to meet the expenses and obligations of, the City of Milton, Georgia to set a levy in the amount of $5.437 on each $1,000.00 of taxable value for all property subject to ad valorem taxation by the City; now BE IT ORDAINED by the Mayor and City Council of the City of Milton, Georgia as follows: SECTION I: The ad valorem tax rate for the City of Milton, Georgia for the 2019 fiscal year, on property subject to ad valorem taxation by the City is hereby fixed at $5.437 on forty percent (40%) of each $1,000.00 of property subject to ad valorem tax by the City. SECTION II: Said rate of $5.437 on forty percent (40%) of each $1,000.00 of taxable property is hereby levied as follows: (a) For General Government purposes $4.731 on forty percent (40%) of each $1,000.00 of taxable property. (b) For the purpose of retiring outstanding General Obligation bonds, $0.706 on forty percent (40%) of each $1,000.00 of taxable property. SECTION III: All ordinances and parts of ordinances in conflict herewith are hereby repealed. Page 2 of 2 ORDAINED this the ____day of ________, 2018. ____________________________________ Joe Lockwood, Mayor Attest: ___________________________ Sudie AM Gordon, City Clerk (SEAL)