M E M O R A N D U M
To: Honorable Mayor and Town Council
From: Rafael G. Casals, Town Manager
Date: September 13, 2016
Re: Fiscal Year 2016-17 Tentative Millage Rate (1st Advertised Budget Hearing)
REQUEST
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A RESOLUTION OF THE MAYOR AND TOWN COUNCIL OF THE TOWN OF CUTLER BAY, FLORIDA, ADOPTING THE TENTATIVE MILLAGE RATE OF THE TOWN OF CUTLER BAY FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2016 THROUGH SEPTEMBER 30, 2017 PURSUANT TO FLORIDA STATUTE 200.065 (TRIM BILL); PROVIDING FOR AN EFFECTIVE DATE.
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BACKGROUND AND ANALYSIS
Please find attached the updated preliminary Fiscal Year 2016-17 proposed budget, which includes the changes to both revenues and expenditures and items discussed during our three (3) Council Budget Workshops: June 22nd, July 18th and August 31st. The preliminary budget was developed using the proposed mileage rate of 2.5329 mills (“ceiling” rate adopted via Resolution No. 16-44). The 2.5329 mills, represents the statutorily computed two-thirds vote maximum millage rate that the Council has in previous years adopted as a ceiling rate for purposes of the Property Appraiser’s Truth in Millage (TRIM) advertising notices. The adopted ceiling mileage rate does not prevent the Council from adopting a lower rate during our Advertised Budget Hearings.
As per State TRIM Notice Law, the Council adopted a higher “ceiling” millage rate of 2.5329 mills for TRIM advertisement purposes (via Resolution 16-44). All Property owners received their individual notices which clearly illustrated both the “ceiling” millage rate (2.5329 mills) AND the lower “rollback” millage rate (2.2194 mills) for comparison purposes. The “rollback” millage rate is defined as: the millage rate necessary to raise the same amount of Ad Valorem tax revenue as the previous fiscal year, excluding taxes from new construction. The “rollback” millage rate will not result in an increase of municipal taxes to the Town’s property owners.
As previously discussed during our June, July, and August Council Budget Workshops, the July 1, 2016 property values of the Town, as certified by the Property Appraiser’s Office, increased 7.4% from the July 1, 2015 certified property values. The increase in property values take to into account several factors, one of which is the positive impacts resulting from the Town Council’s policy decisions and improvements to our existing infrastructure.
The Executive Summary & Department Worksheets (Attachment “A”) includes changes to our projected Revenues/Expenditures and items discussed during the Town Council’s June, July and August Budget Workshops. Additionally, the Executive Summary provides the Council a report per Department of the Town’s budget, highlighting some of the significant changes and items for the upcoming 2016-17 Fiscal Year.
The proposed budget presented to the Council on September 13, 2016 reflects the following changes from our August 31st third Budget Workshop that were discussed with the Council at that Workshop:
General Fund:
• Reduced State Revenue Sharing from $1,283,448 to $1,255,750
• Mayor & Council - Increased Council Committee funds from $2,500 to $5,000
• Parks - Increased Town sponsored events from $50,000 to $75,000
• Parks - Increased Adult/Senior programming from $8,000 to $10,000
Special Revenue - CITT Fund:
• Included $50,400 for MPO South Dade Transit Corridor Study (Reso# 16-40)