M E M O R A N D U M
To: Honorable Mayor and Town Council
From: Rafael G. Casals, Town Manager
Date: August 20, 2014
Re: Fiscal Year 2014-15 Proposed Budget (2nd Council Budget Workshop)Title
Body
Please find attached the updated preliminary Fiscal Year 2014-15 proposed budget, which includes the changes to both revenues and expenditures and items discussed during our July 23rd Council Budget Workshop. The preliminary Fiscal Year 2014-15 Budget is based on a millage rate of 2.5702 mills (the rate currently in effect). Even though the Council adopted a higher “ceiling” rate of 2.7202 mills for TRIM advertisement purposes (via Resolution 14-53), Town staff worked under the premise of “holding the millage rate steady” when developing the preliminary Fiscal Year 2014-15 budget.
Fiscal Year 2013-14 Projected Revenues
Based on some additional “actual” revenues that were posted since our July 23rd Council Budget Workshop, or of which the Town has been notified of, the revised projected Fiscal Year 2013-14 Revenues are as follows (net decrease of $59,000):
• Ad valorem increased $100,000
• Utility Tax increased $200,000
• ½-cent Sales Tax increased $100,000
• Revenue Sharing increased $50,000
• Franchise Fees decreased $309,000 (FPL Franchise Fee issue)
• Building Permits decreased $200,000
Fiscal Year 2014-15 Revenues
Based on some changes to State of Florida Department of Revenue estimates and projections noted above, and pending grants that were awarded to the Town, Town staff revised the Fiscal Year 2014-15 revenue budget as follows (net decrease of $56,350):
• Utility Tax increased $200,000
• Slight increase to Communications Tax and Revenue Sharing
• Franchise Fee decreased $350,000 (FPL Franchise Fee issue)
• Business Tax/Burglar Alarms/Solid Waste increased $35,000
• Fines and Forfeitures decreased $25,000
• Rentals from Tenants increased $50,000
• State Forestry Grant awarded/added for $15,000
• Byrne Grant thru Miami-Dade County awarded/added for $4,700
• Byrne Grant thru Federal government awarded/added for $13,000
Fiscal Year 2014-15 Expenditures
The following Expenditure changes were made since the July 23rd Budget Workshop are (net increase of $60,700):
• Parks & Recreation - decrease Capital Outlay by $2,000 for equipment scheduled to be purchased in Fiscal Year 2013-14 instead
• Public Works - increased Other Contractual Services $15,000 for State Forestry grant spending (fully funded by grant revenue)
• Police - increased Operating Supplies $17,700 for spending of the two (2) Byrne grants (fully funded by grant revenue)
• Cutler Bay Town Center - decreased capital outlay $100,000 by eliminating the parking lot lighting project and increased capital outlay $130,000 to provide for upgrades to the HVAC control system (an energy saving project that will result in energy efficiency for the Town Center)
• General Government - increased Travel/Per Diem $10,000 for the 2014 State of the Town Event and decreased same amount from Mayor & Council budget
As previously discussed during our July 23rd Council Budget Workshop, the 2014 property values of the Town as certified by the Property Appraiser’s Office, increased 8.07% from the 2013 property values. As a result, even by holding the millage rate steady at 2.5702 mills, gross Ad Valorem (i.e., property tax) revenues to the Town will increase approximately $367,000.
In addition to our two (2) Council Budget Workshops, Town residents can also provide their comments/input during our upcoming scheduled Budget Hearings listed below:
|
DATE |
TIME |
PLACE |
|
1st Budget Hearing September 9, 2014 (Tuesday) |
7:00 PM |
Cutler Bay Town Hall Council Chambers 10720 Caribbean Boulevard |
|
2nd Budget Hearing September 23, 2014 (Tuesday) |
7:00 PM |
Cutler Bay Town Hall Council Chambers 10720 Caribbean Boulevard |
The updated Executive Summary (Attachment “A” & “B”) includes changes to our projected Revenues/Expenditures and items discussed during the Town Council’s first Council Budget Workshop and provides a report per department of the Town’s budget, highlighting some of the significant changes and items for the upcoming 2014-15 Fiscal Year.