FREQUENTLY ASKED QUESTIONS

Q. What is the purpose of the City budget?

A: The budget is an annual financial plan for the City of Temple Terrace. It specifies the level of municipal services to be provided in the coming year and the resources, including personnel positions, capital expenditures and operating expenses needed to provide those services. It reflects the policies and priorities set by the Mayor and City Council. (TOP)

Q. How and when is the budget prepared?

A: Each spring, City departments submit their plans and needs for the coming year to the Finance Department which compiles a proposed budget. This is reviewed by the City Manager. The City Manager then submits the recommended budget to the City Council. The Council reviews the budget, holds two public hearings to obtain citizen input and make changes. Finally, the Council adopts the approved budget along with an ordinance establishing the property tax rate required to fund the budget. (TOP)

Q. Who establishes the rules by which the City of Temple Terrace adopts it annual budget and property tax rate?

A: The property tax rate and budget adoption process are governed by both the City Charter and State Statutes. (TOP)

Q. Who is the Chief Executive Officer of the City of Temple Terrace?

A: The City Manager is both the Chief Executive and Chief Administrative Officer of the City of Temple Terrace. This individual is hired by and reports directly to the City Council. All other employees, with the exception of the City Attorney and City Clerk, who also reports to the City Council, report to the City Manager. (TOP)

Q. What is the property tax rate?

A: When the City adopts its annual budget, it determines the tax rate that must be applied on property in order to generate the necessary revenue in addition to all other sources which are available. The tax rate for the City of Temple Terrace is 4.5692 mills or $4.5692 per $1,000 of taxable value. The taxable value of all property in the City is established by the Hillsborough County Property Appraiser. The City has no control over the taxable value of property; it only has control over the tax rate that is levied. (TOP)

Q. The total property tax rate for 2008 on property in the City of Temple Terrace is 19.7001 mills. How much of that was paid to the City?

A: Only 4.5692 mills of the 19.7001 mills levied in Fiscal Year 2005/2006 are paid to the City. This represents only 24% of the total property tax bill. Other taxing agencies in Hillsborough County include the County Services, Hillsborough County School Board, South West Florida Water Management District, the Port Authority, and the Transit Authority. (TOP)

Q. How do I compute my property tax?

A: One mill is equal to $1 for each $1,000 of assessed property value. Property taxes on a $125,000 home to which the $25,000 homestead exemption is applied would pay, with a millage rate of 4.5692 mills, a property tax of $456.92. (TOP)

Q. What is homestead exemption?

A: The Florida Constitution provides that a homeowner may apply for and receive a homestead exemption in the amount of $25,000 on his or her principal residence. After property is appraised by the County Property Appraiser, $25,000 is subtracted from the appraised value leaving what is known as taxable value. The taxable value is that amount upon which the property tax rate is applied. (TOP)

Q. What is the difference between ad valorem tax and property tax?

A: There is no difference. They are different names for the same tax. (TOP)

Q. What is an Operating Budget?

A: An Operating Budget is an annual financial plan for recurring expenditures, such as salaries, utilities, supplies, insurance and equipment repairs. (TOP)

Q. What is a Capital Improvement Budget?

A: A Capital Improvement Budget is a financial plan for the construction of physical assets, such as buildings, streets, sewers, and vehicles and equipment. (TOP)

Q. What is a fund?

A: A fund is a separate accounting entity within the City that receives revenues from a specific source and expends them on a specific activity or activities. (TOP)

Q. What is an Enterprise Fund?

A: An Enterprise Fund earns its own revenues by charging customers for services that it provides. It receives no tax funds. The City of Temple Terrace operates its water and sewer utilities, and solid waste/recycling collection activities, as enterprise funds. (TOP)

Q. What is an Internal Service Fund?

A: An Internal Service Fund earns its own revenues by charging other City departments for services that it provides to them. Examples of internal service funds within the City of Temple Terrace are the Garage Fund, Central Supplies, and Insurance Funds. (TOP)

Q. What is a fiscal year?

A: A fiscal year is a 12-month operating cycle that comprises a budget and financial reporting period. The City's fiscal year, along with other local governments and special districts within the State of Florida, begins on October 1 and ends on September 30.(TOP)

Q. What is a budget appropriation?

A: A budget appropriation is a specific amount of money that has been approved by the City Council for use in a particular manner. (TOP)

Q. What is a budget amendment?

A: A budget amendment is an ordinance adopted by the City Council which alters the adopted budget by appropriating additional monies to a particular department, decreasing appropriations to a particular department, or transferring funds from one department to another. (TOP)

Q. Where does the City obtain its revenues?

A: All monies are ultimately derived from citizens in the form of local, state and federal taxes; fees, fines and licenses; and payments for municipal services such as recreation fees, and utilities services (water, sewer, and garbage collection). (TOP)

Q. What are utility taxes and franchise fees, and why does the City of Temple Terrace levy them?

A: A utility tax is a tax levied on utility bills, to be paid by the utility purchaser. It is similar to a sales tax, except it only applies to utility bills and not to any other purchases.

The franchise fee is a charge levied by the City on a utility to operate within the City and to use the City rights-of-way and other properties for locating pipes, wire, etc. The state allows utilities to pass on the franchise fee directly to customers on their bills.

The City of Temple Terrace, like most cities in Florida, relies very heavily on utility taxes and franchise fees for revenues rather than on the property tax, which is usually much lower than property taxes levied in other states. (TOP)