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 24, 2019
Re: Fiscal Year 2019-20 Millage Rate for Final Adoption of the Budget
(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, 2019 THROUGH SEPTEMBER 30, 2020 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 2019-20 budget for adoption, which includes the changes to revenues and expenditures based on items discussed during the First Budget Hearing (September 10th) as well as during the two (2) Council Budget Workshops (June 27th and July 29th). The tentative budget was developed using the tentative millage rate of 2.4323 mills adopted at the First Budget Hearing via Resolution No. 19-57. The tentative millage rate adopted at the First Budget Hearing does not prevent the Council from adopting a lower rate during the Second Budget Hearing.
The tentative millage rate is 6.2% greater than the roll-back rate of 2.2903 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.
The attached tentative budget reflects a budgeted "dip" into reserves of approximately $2.42 million. One financial trend, which I must advise the Council on, is the actual "dips" into our Fund Reserves in recent years.
As shown below, while the Town "dipped" (i.e., ran a deficit) for fiscal years 2015, 2016 and 2017, it was much less than anticipated (i.e., the "budgeted dip") as Town Staff was able to navigate the Town's oper...
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