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HomeMy WebLinkAboutSummary Form FROWN w AGENDA ITEM SUMMARY (FORM Y 15-01046 FILE ID; Date: 7/17/2015 Requesting Department: Management & Budget Commission Meeting Date: 9/10/2015 District Impacted: Various Law Department Type: ❑ Resolution M Ordinance ❑ Emergency Ordinance ❑ Discussion Item Matter ID No. ❑ Other Subject: Establishing the FY 2015-16 Milla e Rates Purpose of Item: To establish millage rate for the fiscal year ending September 30, 2016 (FY 2015-16) at: General Operating 7.6465 Debt Service 0.6886 Total Millage Rate 8.3351 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 o:NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds? Start Up Capital 'Cost: Maintenance Cost: Total Fiscal Impact: Final Approvals (SIGN AND DATES CIP Bud t If using or receiving capital funds Grants Risk Management Purchasing ,a— Dept. Director Chic �" l City Manag Page I of I Background Information The City of Miami FY 2015-16 Proposed Operating Budget, as presented on July 7, 2015, contains the following recommended millage rate: General Operating 7.6465 Debt Service 0.6886 Total Millage Rate 8.3351 On July 23, 2015, the City of Miami Commission approved the millage caps as proposed above by Resolution No. R-15-0325. A five- year history of millage rates shows a steady overall decline: FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 Proposed General Operating 7.5710 7.5710 7.6148 7.6465 7.6465 Debt Service 0.9300 0.9000 0.8162 0.7385 0,6886 Total Miliage Rate 8.5010 8.4710 8,4310 8.3850 8.3351 For the City Commission's reference, every tenth mill will generate approximately $3.5 million for the City of Miami General Fund in the next fiscal year. Florida Statute Section 200.065 governs the setting the 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 1 certification of value, which is no earlier than September 4 and no later than September 19. 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 1. The City of Miami proposes to set the first budget hearing for September 10, 2015 and the second budget hearing on September 24, 2015. Miami- Dade County is scheduled to present their budget hearings on September 3, 2015 and September 17, 2015, The School Board Budget Meeting is scheduled for September 9t", 2015. Effectively, the tentative millage adopted 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.