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HomeMy WebLinkAboutSummary FormAGENDA ITEM SUMMARY FORM FILE ID: 16-01216 Date: 9/9/2016 Requesting Department: Management and Budget Commission Meeting Date: 9/20/2016 District Impacted: Various Law Department Type: Z Resolution ❑ Ordinance ❑ Emergency Ordinance ❑ Discussion Item Matter ID No. ❑ Other Subject: Establishing the FY 2016-17 Millape Rates Purpose of Item: To establish millage rate for the fiscal year ending September 30, 2017 (FY 2016-17) at: General Operating 7.6465 Debt Service 0.6435 Total Millage Rate 8.2900 Passed on First Reading at the September 6, 2016 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 o: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: CIP If using or receiving capital funds Grants Final Approvals (SIGN AND DATE BudjW i—S Management Page 1 of 1 Background Information The City of Miami FY 2016-17 Proposed Operating Budget, as presented on July 7, 2016, contains the following recommended millage rate: General Operating 7.6465 Debt Service 0.6435 Total Millage Rate 8.2900 On July 29, 2016, the City of Miami Commission approved the millage caps as proposed above by Resolution No. R-16-0365. A five- year history of millage rates shows a steady overall decline: FY 2012-13 FY 2013-14 General Operating 7.5710 7.6148 Debt Service 0.9000 0.8162 Total Millage Rate 8.4710 8.4310 FY 2014-15 FY 2015-16 FY 2016-17 Proposed 7.6465 7.6465 7.6465 0.7385 0.6886 0.6435 8.3850 8.3351 8.2900 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 1 st 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. Effectively, the tentative millage adopted on July 29, 2016 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.