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 17, 2018
Re: Fiscal Year 2018-19 Final Operating and Capital Outlay Budget for Adoption
(2nd Advertised Budget Hearing)
REQUESTTitle
A RESOLUTION OF THE MAYOR AND TOWN COUNCIL OF THE TOWN OF CUTLER BAY, FLORIDA, ADOPTING THE FINAL OPERATING AND CAPITAL OUTLAY BUDGET FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2018 THROUGH SEPTEMBER 30, 2019 PURSUANT TO FLORIDA STATUTES SECTION 200.065; AUTHORIZING THE TOWN MANAGER TO MAKE EXPENDITURES CONSISTENT THEREWITH AND AUTHORIZING THE TOWN MANAGER TO MAKE CERTAIN BUDGET AMENDMENTS WITHIN A DEPARTMENT PROVIDED THAT THE TOTAL OF THE APPROPRIATIONS IS NOT CHANGED; AND PROVIDING FOR AN EFFECTIVE DATE.
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BACKGROUND AND ANALYSIS
Please find attached the updated tentative Fiscal Year 2018-19 budget for final adoption, which includes the changes to both revenues and expenditures and items discussed during three (3) Council Budget Workshops (June 11th, July 9th and July 23rd), as well as during the 1st Public Budget Hearing (September 4th). The tentative budget was developed using the tentative millage rate of 2.4739 mills adopted at the 1st Public Budget Hearing (“ceiling” rate adopted via Resolution No. 18-57). 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 tentative millage rate does not prevent the Council from adopting a lower rate during the Budget Hearing process.
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. 18-57). 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.
The 2nd Budget Hearing scheduled for September 17, 2018, 7:00 p.m., at the Cutler Bay Town Hall, 10720 Caribbean Blvd., Cutler Bay, Florida, was advertised in The Miami Herald Local Section on Thursday, September 13, 2018.
As previously 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 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.
Attached you will find the Budget Account Descriptions (Attachment “A”). This document provides a general definition of the line items identified in the Town’s budget expenditure reports.
Secondly, the Proposed Budget- Detailed Revenues & Expenditures FY 2018-19 (Attachment “B”) provide the Council with the following comparative information:
Ø Actual Fiscal Year 2016-17
Ø Adopted Fiscal Year 2017-18
Ø Actual Projection Fiscal Year 2017-18
Ø Tentative Fiscal Year 2018-19 (Millage Rate at 2.4739)
Ø Net Change Comparison of:
o July 9th Workshop for FY 2018-19 to Adopted FY 2017-18
o July 23rd Workshop for FY 2018-19 to July 9th Workshop for FY 2018-19
o September 4th First Budget Hearing to July 23rd Workshop for FY 2018-19
ATTACHMENTS
Ø Attachment “A” - Budget Account Descriptions
Ø Attachment “B” - Proposed Budget- Detailed Revenues & Expenditures
FY 2018-19
Ø Attachment “C” - Second Public Hearing Advertisement Miami Herald Local
Section (September 13, 2018)