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HomeMy WebLinkAboutSummary Form SRFILE ID: Date: 9/12/2014 Commission Meeting Date: 9/23/2014 SECOND READING ORDINANCE AGENDA ITEM SUMMARY FORM 14-00822 Requesting Department: Management & Budget District Impacted: All Type: Resolution Ordinance 1 I Emergency Ordinance Discussion Item II Other Subject: Establishing the FY 2014-15 Millage Rates Purpose of Item: Law Department Matter ID No. To establish millage rate for the fiscal year ending September 30, 2015 (FY 2014-15) at: General Operating Debt Service Total Millage Rate 7.6465 0.7385 8.3850 Passed on First Reading at the September 9, 2014 First Budget Hearing. Background Information: See attached. Budget Impact Analysis YES Is this item related to revenue? NO Is this item an expenditure? If so, please identify funding source below. General Account No: Special Revenue Account No: CIP Project No: NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds? Start Up Capital Cost: Maintenance Cost: Total Fiscal Impact: Final Approvals (SIGN AND DATE) CIP Bu �: - ,�- Risk Management Purchasing Dept. Direct Chief �► City Managpri If using or receiving capital funds Grants // Y Page 1 of 2 Background Information: The City of Miami FY 2014-15 Proposed Operating Budget as presented on July 9, 2014 contains the following recommended millage rates. • General Operating • Debt Service • Total Millage Rate 7.6465 0.7385 8.3850 On July 24, 2014, the City of Miami Commission approved the millage caps as proposed above by Resolution R-14-0298. A four-year history of millage rates shows a steady overall decline: • General Operating • Debt Service • Total Millage Rate FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 Proposed 7.5710 7.5710 7.6148 7.6465 0.9300 0.9000 0.8162 0.7385 8.5010 8.4710 8.4310 8.3850 For the City Commission's reference, every tenth of a mill will generate approximately $3.1 million for the City of Miami General Fund in the next fiscal year. Florida Statute Section 200.065, governs the setting of millage rates, adoption of budget, and the timeframes required of each. It requires that the City of Miami advise the Property Appraiser of its proposed millage within 35 days of the July 1st certification of value so that the information can be included in the notice of proposed property taxes mailed to property owners in August. The same statute governs the timeframes for the first and second budget hearings. The first hearing must be held between 65 and 80 days of the same July 1st certification of value, which is no earlier than September 4th and no later than September 19th. The City must then hold a second budget hearing with enough time to provide the final budget and millage rates to the property appraiser, tax collector, and State of Florida Department of Revenue by October 1st Effectively, the tentative millage adopted on July 24, 2014 represents the upper limit for the millage rates to be considered in September. The Commission may lower the general operating millage rate at either of the two budget hearings, but effectively cannot raise it above what is adopted in July. State law allows for this possibility, but it cannot be practically achieved within the timeframes provided in state law. According to the Property Appraiser's Office, this re -noticing of millage rates has not been accomplished even once in the history of the State of Florida. Page 2 of 2