M E M O R A N D U M
To: Honorable Mayor and Town Council
From: Rafael G. Casals, Town Manager
Date: September 27, 2016
Re: Fiscal Year 2016-17 Final Millage Rate (2nd 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 FINAL 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 tentative Fiscal Year 2016-17 budget, which includes the changes to both revenues and expenditures and items discussed during the First Budget Hearing on September 13, 2016, as well as during our three (3) Council Budget Workshops: June 22nd, July 18th and August 31st. The tentative budget was developed using the tentative mileage rate of 2.3907 mills, as adopted by the Town Council at the September 13, 2016 First Budget Hearing. The 2.3907 tentative millage rate serves as a “ceiling” rate for the Second Budget Hearing on September 27, 2016, and does not prevent the Council from adopting a lower rate during the Second Budget Hearing.
The tentative millage rate of 2.3907 mills is 7.72% greater than the statutorily computed “rollback” millage rate (2.2194 mills). 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 First Budget Hearing on September 13, 2016, as well as 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 First Budget Hearing as well as during the 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 tentative budget presented to the Council on September 27, 2016 reflects the following changes from our First Budget Hearing on September 13, 2016 that were discussed with the Council at the First Budget Hearing:
General Fund:
• The tentative millage rate was set at 2.3907 mills which reduced budgeted ad valorem revenues by approximately $301,900
• Deferred certain improvement projects related to the Cutler Bay Town Center which reduced expenditures in that department by approximately $1.2 million