In mid-August, property owners throughout Florida receive their annual Truth in Millage (TRIM) Notice. For Orchid's residents, this is received from the Indian River County Property Appraiser and is tangible evidence of the budget and tax-setting process that local authorities started in prior months.
It's a rather complicated document - even Florida Legislators have expressed confusion about the calculations involved, and they're responsible for the state laws that dictate them! The Town has prepared a guide that breaks down the various parts of the notice and aims to provide a helpful overview to get the most out of carefully reviewing it.
Orchid is usually the first in Indian River County to hold an initial budget meeting, as early as the first week of May! That is the first time the Town Council formally considers the budget for the next fiscal year, which annually starts on October 1. The purpose is to adopt a proposed property tax (millage) rate to be published on the annual TRIM Notice in August.
Generally, the proposed tax rate is the maximum tax rate that can be adopted for the next fiscal year. It is prudent to set the proposed tax rate at a more elevated level than may be anticipated to be necessary, in order to enjoy flexibility in September, when the rate can be lowered over the course of 2 public hearings, if circumstances are favorable. In early May, almost half the fiscal year is still to unfold, including the portion that falls into the height of hurricane season, and many official estimates are not yet released by the Indian River County Property Appraiser and the Florida Department of Revenue.
Last year, the proposed tax rate was 1.00, and the final tax rate was 0.70. That's a difference of 30¢ per $1,000 of taxable value. This year, the Town Council again opted for a higher proposed tax rate than is expected to be adopted as the final tax rate in September. The proposed rate this year is 0.8, which signifies a starting point already lower than last year's.
The Town Council will meet twice in September on the 14th and 21st to determine whether the tax rate can indeed be lowered, once the official estimates as well as other new information available since May are factored in. 1 such item is the estimated increase in gross property values, for instance. The budget workbook for the first September meeting is currently in development and is expected to be available by September 8.
Residents are encouraged to participate in the budget process, even though the state-mandated time frame is not ideal for Orchid's seasonal population. Advance email and phone feedback is absolutely welcome.