M E M O R A N D U M
To: Honorable Mayor and Town Council
From: Rafael G. Casals, ICMA-CM, CFM, Town Manager
Date: September 4, 2018
Re: Fiscal Year 2018-19 Proposed Millage Rate for Adoption of the Tentative Budget
(1st Advertised Budget Hearing)
REQUESTTitle
A RESOLUTION OF THE MAYOR AND TOWN COUNCIL OF THE TOWN OF CUTLER BAY, FLORIDA, ADOPTING THE PROPOSED MILLAGE RATE OF THE TOWN OF CUTLER BAY FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2018 THROUGH SEPTEMBER 30, 2019 PURSUANT TO FLORIDA STATUTES SECTION 200.065; AND PROVIDING FOR AN EFFECTIVE DATE.
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BACKGROUND AND ANALYSIS
Please find attached the tentative Fiscal Year 2018-19 budget for adoption, which includes the changes to both revenues, expenditures, and items discussed during three (3) scheduled Council Budget Workshops (June 11th, July 9th and July 23rd). The tentative budget was developed using the proposed millage rate of 2.4739 mills (“ceiling” rate adopted via Resolution No. 18-56). The 2.4739 millage rate 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 notice. The adopted ceiling millage 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 2.4739 mills for TRIM advertisement purposes (via Resolution No.18-56). All Property owners received their individual notices which clearly illustrated both the “ceiling” millage rate (2.4739 mills) AND the lower “rollback” millage rate (2.2164 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 discussed during our July Council Budget Workshops, the July 1, 2018 property values of the Town, as certified by the Property Appraiser’s Office, increased 6.18% from the 2017 certified property values. The increase in property values take into account several factors, one of which is the positive impact resulting from the Town Council’s policy decisions and improvements to our existing infrastructure.
The attached 1st Budget Hearing Executive Summary (Attachment “A”) and the Tentative Budget FY 2018-19 Detailed Revenue & Expenditures (Attachment “B”) reflect changes to our projected revenues/expenditures based on items discussed during the Town Council’s June and July Budget Workshops. The Executive Summary provides a concise narrative of the significant changes made to the tentative budget drafts based on Council discussions during the June and July Workshops. The Detailed Revenue and Expenditure Worksheets provide detailed information by revenue source and expenditures by department/fund.
Detailed Revenue and Expenditure Worksheets provides the Council with the following comparative information:
• Actual Fiscal Year 2016-17
• Adopted Fiscal Year 2017-18
• Actual Projection Fiscal Year 2017-18
• Proposed Fiscal Year 2018-19 (Millage Rate at 2.4739)
• Net Change Comparison of:
Ø July 9th Workshop for FY 2018-19 to Adopted FY 2017-18
Ø July 23rd Workshop for FY 2018-19 to July 9th Workshop for FY 2018-19
Ø September 4th First Budget Hearing to July 23rd Workshop for FY 2018-19
Additionally, please find the FY 2018-19 Proposed Millage Cost of Departments General Fund (Attachment “C”) as stated in the Town Charter Section 6.2 Citizens’ Bill of Rights (A) (11).
ATTACHMENTS
Ø Attachment “A” - 1st Budget Hearing Executive Summary
Ø Attachment “B”- Tentative Budget FY 2018-19 Detailed Revenue & Expenditures
Ø Attachment “C”- FY 2018-19 Proposed Millage Cost of Departments General Fund