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HomeMy WebLinkAbout2004 07 12 Regular 509 COMMISSION AGENDA ITEM 509 CONSENT INFORMATIONAL PUBLIC HEARING REGULAR X July 12,2004 Meeting MGR ty- IDEPT Authorization REQUEST: The City Manager is requesting that the City Commission approve Resolution No. 2004-29, opposing an amendment to the Florida Constitution that would raise Florida's Homestead Exemption from $25,000 to $50,000. PURPOSE: The purpose of this Resolution is to oppose an amendment to the Florida Constitution that would raise Florida's Homestead Exemption from $25,000 to $50,000. CONSIDERATIONS: The State of Florida currently has a homestead exemption, in which $25,000 can be deducted from the assessed value of a primary residence for the purpose of paying property tax. Efforts are currently underway, by a group called Families for Lower Property Taxes, to place an amendment on the November 2004 general election ballot that would increase Florida's current $25,000 homestead exemption to $50,000. If this amendment is approved, the City of Winter Springs would suffer a loss of $1,070,109 and would be forced to respond to this loss by reducing vital services to its citizens, or by raising other fees and taxes to continue these vital services. This amendment could also impact local governments who are at or near the 10 mill cap for ad valorem taxes by not allowing them to raise their, property taxes to make up for this loss in revenue. Lastly, this amendment would raise property taxes on rental properties and commercial properties that do not receive any homestead exemption by placing a disproportional burden on small business. FUNDING: If this amendment is passed, the City of Winter Springs would lose $1,070,109 in property tax revenue each year. RECOMMENDATION: The City Manager recommends approval of this Resolution. ATTACHMENTS: Resolution No. 2004-29 COMMISSION ACTION: 071204_ cOMM_REGULAR_509 _ OPPOSING_INCREASE_ OF _HOMESTEAD_EXEMPTION Page I of I RESOLUTION NO. 2004-29 A RESOLUTION OF THE CITY COMMISSION OF WINTER SPRINGS, FLORIDA, OPPOSING AN AMENDMENT TO THE FLORIDA CONSTITUTION THAT WOULD RAISE FLORIDA'S HOMESTEAD EXEMPTION FROM $25,000 TO $50,000; PROVIDING FOR THE REPEAL OF PRIOR INCONSISTENT RESOLUTIONS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Florida's property tax continues to be a strong source of revenue for most local governments; and WHEREAS, Florida currently has a homestead exemption in which $25,000 can be deducted from the assessed value of a primary residence, for the purposes of paying property tax; and WHEREAS, in 1992, Florida's voters approved the Save Our Homes amendment, which limits the increase in the assessed value of a primary residence to no more than 3 percent a year or the amount of the consumer price index (CPD, whichever is less; and WHEREAS, in 1998, Florida voters approved an additional constitutional amendment that allows cities and counties to give an additional $25,000 homestead exemption to low income senior citizens; and WHEREAS, efforts are currently underway, by a group called Families for Lower Property Taxes, to place an amendment on the November 2004 general election ballot that would increase Florida's current $25,000 homestead exemption to $50,000; and WHEREAS, if this amendment is approved, the City of Winter Springs, Florida, would suffer a loss of $1,070,109 and would be forced to respond to this loss by reducing vital City services to its citizens, or by raising other fees and taxes to continue these vital services; and WHEREAS, this amendment would have a greater impact on local governments who are at or near the 10 mill cap for ad valorem taxes and would not be able to raise their property taxes to make up for this loss in revenue; and WHEREAS, this amendment would raise property taxes on rental properties and commercial properties that do not receive any homestead exemption thereby placing a disproportional burden on small businesses. City of Winter Springs Resolution No. 2004-29 Page 1 of2 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, SEMINOLE COUNTY, FLORIDA, AS FOLLOWS: Section 1. The foregoing recitals are affirmed and incorporated as part of this resolution. Section 2. The City of Winter Springs opposes the Homestead Exemption amendment and urges its citizens not to sign petitions supporting its placement on the November 2004 ballot. Section 3. The City of Winter Springs urges voters to oppose this initiative on the November 2004 general election ballot. Section 4. All prior inconsistent resolutions adopted by the City Commission are hereby repealed. Section 5. If any section, clause, phrase, word, or provision of this resolution is for any reason held invalid or unconstitutional by a court of competent jurisdiction, whether for substantive or procedural reasons, such portions shall be deemed a separate, distinct, and independent provision, and such holding shall not affect the validity of the remaining portions of this resolution. Section 6. This resolution shall become effective immediately upon passage by the City Commission of the City of Winter Springs, Florida, and pursuant to the City Charter. RESOLVED by the City Commission of the City of Winter Springs, Florida, in a regular meeting assembled on the day of , 2004. CITY OF WINTER SPRINGS John F. Bush, Mayor ATTEST: ANDREA LORENZO~LAUCES, City Clerk Approved as to legal form and sufficiency for The City of Winter Springs only: ANTHONY A. GARGANESE, City Attorney City of Winter Springs Resolution No. 2004-29 Page 2 of2 " " RESOLUTION NUMBER 2004-29 A RESOLUTION OF THE CITY COMMISSION OF WINTER SPRINGS, FLORIDA, OPPOSING AN AMENDMENT TO THE FLORIDA CONSTITUTION THAT WOULD RAISE FLORIDA'S HOMESTEAD EXEMPTION FROM $25,000 TO $50,000; PROVIDING FOR THE REPEAL OF PRIOR INCONSISTENT RESOLUTIONS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Florida's property tax continues to be a strong source of revenue for most local governments; and WHEREAS, Florida currently has a homestead exemption in which $25,000 can be deducted from the assessed value of a primary residence, for the purposes of paying property tax; and WHEREAS, in 1992, Florida's voters approved the Save Our Homes amendment, which limits the increase in the assessed value of a primary residence to no more than 3 percent a year or the amount of the consumer price index (CPI), whichever is less; and WHEREAS, in 1998, Florida voters approved an additional constitutional amendment that allows cities and counties to give an additional $25,000 homestead exemption to low income senior citizens; and WHEREAS, efforts are currently underway, by a group called Families for Lower Property Taxes, to place an amendment on the November 2004 general election ballot that would increase Florida's current $25,000 homestead exemption to $50,000; and WHEREAS, if this amendment is approved, the City of Winter Springs, Florida, would suffer a loss of $1,070,109 and would be forced to respond to this loss by reducing vital City services to its citizens, or by raising other fees and 'taxes to continue these vital services; and WHEREAS, this amendment would have a greater impact on local governments who are at or near the 10 mill cap for ad valorem taxes and would not be able to raise their property taxes to make up for this loss in revenue; and WHEREAS, this amendment would raise property taxes on rental properties and commercial properties that do not receive any homestead exemption thereby placing a disproportional burden on small businesses. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMl\lISSION OF THE CITY OF WINTER SPRINGS, SEMINOLE COUNTY, FLORIDA, AS FOLLOWS: Section 1. The foregoing recitals are affirmed and incorporated as part of this resolution. Section 2. The City of Winter Springs opposes the Homestead Exemption amendment and urges its citizens not to sign petitions supporting its placement on the November 2004 ballot. Section 3. The City of Winter Springs urges voters to oppose this initiative on the November 2004 general election ballot. Section 4. All prior inconsistent resolutions adopted by the City Commission are hereby repealed. Section 5. If any section, clause, phrase, word, or provision of this resolution is for any reason held invalid or unconstitutional by a court of competent jurisdiction, whether for substantive or procedural reasons, such portions shall be deemed a separate, distinct, and independent provision, and such holding shall not affect the validity of the remaining portions ofthis resolution. Section 6. This resolution shall become effective immediately upon passage by the City Commission of the City of Winter Springs, Florida, and pursuant to the City Charter. RESOL VED by the City Commission of the City of Winter Springs, Florida, in a regular meeting assembled on the 12th day of July 4. AT-J'EST: App, oved as to legal form and sufficiency for The Ci~ Winter Springs only: ANTHONY A. GARGANESE, City Attorney City Of Winter Springs Resolution Number 2004-29 Page 2 Of2