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HomeMy WebLinkAboutAgenda Packet CC - 08/12/2019 - Special Called Packet2006 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 Carol Cookerly Joe Longoria Rick Mohrig CITY COUNCIL CHAMBERS City Hall Monday, August 12, 2019 Special Called Meeting Agenda 5:45 PM 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. 19-171) 5)PUBLIC COMMENT (GENERAL) MILTON CITY COUNCIL SPECIAL CALLED MEETING AUGUST 12, 2019 Page 2 of 2 Persons needing special accommodations in order to participate in any City meeting should call 678.242.2500. 6) 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 2020; and for Other Purposes. (First Presentation at July 22, 2019 Special Called City Council Meeting) (First Public Hearing Held on July 22, 2019 Special Called City Council Meeting) (Second Public Hearing Held on July 22, 2019 Special Called City Council Meeting) (Agenda Item No. 19-152) (Bernadette Harvill, Finance Director) **This meeting will be recessed at this point and reconvened after the conclusion of the 6:00 PM work Session to vote on Agenda item No. 19-152. 8) UNFINISHED BUSINESS 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 2020; and for Other Purposes. (First Presentation at July 22, 2019 Special Called City Council Meeting) (First Public Hearing Held on July 22, 2019 Special Called City Council Meeting) (Second Public Hearing Held on July 22, 2019 Special Called City Council Meeting) (Third Public Hearing Held on August 12, 2019 Special Called City Council Meeting) (Agenda Item No. 19-152) (Bernadette Harvill, Finance Director) 9) ADJOURNMENT (Agenda Item No. 19-172) To: Honorable Mayor and City Council Members From: Bernadette Harvill, Finance Director Date: Submitted on July 16, 2019 for the July 22, 2019 Special Called City Council Meeting (First Presentation) and August 12, 2019 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 2020; and for Other Purposes. Executive Summary: The City has advertised and enclosed an ordinance based on a Maintenance and Operating (M&O) millage rate of 4.731 mills, which is a return to the same millage rate used to calculate Milton property tax bills for each tax year from 2007 to 2017. We are also proposing a bond millage rate of 0.588 mills for the General Obligation Bond, Series 2017 (i.e. greenspace bond) that was approved through referendum on the November 2016 ballot. This will cover the third year of debt service payments totaling $1,713,875. The Fulton County digest for tax year 2019 reflects taxable assessments for real and personal property at $3,164,882,867, net of exemptions (please note HB710 passed in 2018 created a new floating exemption based on the consumer price index for properties with a current homestead exemption including the primary residence and five (5) contiguous acres of land which has more than doubled the City’s exemptions). The return to 4.731 mills represents an increase of 11.03% over the 2018 digest due to reassessments of existing real property as well as the increase from 4.390 mills. Motor vehicle assessed values in 2019 are $19,364,570 and have decreased by 27% since 2018. This decline is a result of HB386, which is phasing out motor vehicle taxes (or the “birthday tax”) and replacing it with the title ad valorem tax (TAVT). 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 M&O purposes, excluding motor vehicle tax, is roughly $12.6 million. The FY20 budget anticipates year one collections totaling $11,710,008, or 95%, for real property and $202,017, or 65%, for personal property. Historically, Milton has experienced a collection rate of 90–94% of real property by the due date. Alternatives: Council will be presented with alternative millage rage options ranging from the 2019 calculated rollback rate of 4.261 mills to the capped rate of 4.731 mills with corresponding service level implications. Legal Review: Not required. Concurrent Review: Steve Krokoff, City Manager 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 2020; 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 $5.319 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 2020 fiscal year, on property subject to ad valorem taxation by the City is hereby fixed at $5.319 on forty percent (40%) of each $1,000.00 of property subject to ad valorem tax by the City. SECTION II: Said rate of $5.319 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, $0.588 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. Incorporated City of Milton 2014 2015 2016 2017 2018 2019 Real & Personal 2,156,608,276 2,332,989,792 2,435,683,451 2,522,451,452 3,002,308,260 3,164,882,867 Motor Vehicle 110,057,590 80,438,520 55,613,700 38,158,500 26,535,480 19,364,570 Mobile Homes 0 0 0 0 0 0 Timber – 100%0 0 0 0 0 0 Heavy Duty Equipment 0 0 0 104,009 61,463 76,149 Gross Digest 2,266,665,866 2,413,428,312 2,491,297,151 2,560,713,961 3,028,905,203 3,184,323,586 Less M&O Exemptions 154,175,700 174,457,350 163,773,480 169,616,430 196,963,090 493,828,424 Net M&O Digest 2,112,490,166 2,238,970,962 2,327,523,671 2,391,097,531 2,831,942,113 2,690,495,162 Gross M&O Millage Rate 6.742 8.374 8.342 8.244 7.417 8.171 Less Millage Rate Rollbacks (LOST)2.011 3.643 3.611 3.513 3.027 3.440 Net M&O Millage Rate 4.731 4.731 4.731 4.731 4.390 4.731 Bond Millage Rate 0 0 0 0.321 0.671 0.588 Total City Millage Rate 4.731 4.731 4.731 5.052 5.061 5.319 M&O Taxes Levied 9,994,191 10,592,572 11,011,514 11,312,282 12,432,226 12,728,733 Bond Taxes Levied 0 0 0 767,542 1,900,233 1,821,658 Total City Taxes Levied 9,994,191 10,592,572 11,011,514 12,079,825 14,332,459 14,550,391 Net M&O Taxes $ Increase 747,534 598,381 418,943 300,768 1,119,943 296,507 Net M&O Taxes % Increase 8.1%6.0%4.0%2.7%9.9%2.4% NOTE: For the 2019 tax year, staff is presenting multiple millage rate options to the City Council including the capped millage rate of 4.731 mills. The legally advertised rate above represents a return to the capped millage rate in place from 2006 to 2017. Millage rate options along with corresponding service levels will be presented by staff during the public hearings on July 22, 2019 (9:00 AM and 6:00 PM) and August 12, 2019 (5:45 PM). Actual changes in property values will not be available until the City receives the official property digest from the Fulton County Tax Commissioner. 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 12, 2019 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 2019 Tax Digest and Five Year History of Levy Page 2 of 2 ORDAINED this the ____day of ________, 2019. ____________________________________ Joe Lockwood, Mayor Attest: ___________________________ Sudie AM Gordon, City Clerk (SEAL) CITY OF MILTON NOTICE OF PROPERTY TAX INCREASE AS REQUIRED BY STATE LAW The City of Milton has tentatively adopted a millage rate which will require an increase in property taxes by 11.02 percent. All concerned citizens are invited to the public hearings on this tax increase to be held at the City of Milton Council Chambers, 2006 Heritage Walk, Milton, Georgia, 30004, on the following dates and times: July 22, 2019 at 9:00 AM July 22, 2019 at 6:00 PM August 12, 2019 at 5:45 PM This tentative increase will result in a millage rate of 4.731 mills, an increase of 0.470 mills. Without this tentative tax increase, the millage rate will be no more than 4.261 mills. The proposed tax increase for a home with a fair market value of $400,000 is approximately $75.20 and the proposed tax increase for non-homestead property with a fair market value of $575,000 is approximately $108.10. CITY OF MILTON NOTICE OF PROPERTY TAX INCREASE DETAILED EXPLANATION For the 2019 tax year, staff is presenting multiple millage rate options to the City Council including the capped millage rate of 4.731 mills. The legally advertised rate above excludes the separately calculated greenspace bond millage rate and represents a return to the capped millage rate in place from 2006 to 2017. Millage rate options along with corresponding service levels will be presented by staff during the public hearings outlined above. Actual changes in property values will not be available until the City receives the official property digest from the Fulton County Tax Commissioner.