The Ocala City Council slightly increased the millage rate for the coming year and approved an $820.2 million budget late Tuesday afternoon.
Council members set the millage rate at 6.617 per $1,000 assessed valuation, which is .53 percent above the rollback rate of 6.5825. The rollback rate is the amount needed to collect the same ad valorem tax revenue as the prior year.
Council members were told that the additional revenue brought in from the increase over the rollback rate will assist with cost pressures related to salaries, benefits and operating costs, along with allowing for the maintenance of reserves.
The general fund – money used to run the city’s day-to-day operations – will be about $118.7 million. Transfers from enterprise funds to the general fund will be 10 percent of gross revenues from sanitation, water resources and the Ocala Fiber Network, with a transfer from the electric fund of 15 percent.
The council also approved a budget of $222,364 for the Downtown Development Fund, as well as three higher millage rates. Those millage rates are:
- District A: 1.7185 (14.73 percent over the rollback rate of 1.4978)
- District B: 1.6332 (14.17 percent over the rollback rate of 1.4305)
- District C: 1.4699 (13.73 percent over the rollback rate of 1.2925)
The anticipated ad valorem tax revenue, including interest for the three districts, is $98,994. That revenue is used specifically for promotion and enhancement of the downtown area. The Downtown Development Fund is included in the city’s overall budget.