Council Memo - Millage Rate 2017-18.pdf
BAL HARBOUR -
VILLAGE
-
COUNCIL MEMORANDUM
TO:
Honorable Mayor and Village Council
FROM:
Jorge M. Gonzalez, Village Manager
\~
DATE:
July 18, 2017
U
SUBJECT:
A RESOLUTION OF THE VILLAGE COUNCIL OF BAL HARBOUR VILLAGE, FLORIDA; DETERMINING THE PROPOSED MILLAGE RATE, AND THE DATE, TIME AND PLACE FOR THE FIRST BUDGET HEARING FOR FISCAL YEAR 2017-18; AS REQUIRED BY LAW; DIRECTING THE VILLAGE CLERK TO FILE SAID RESOLUTION WITH THE PROPERTY APPRAISER OF MIAMI-DADE COUNTY; AND PROVIDING FOR AN EFFECTIVE DATE.
ADMINISTRATIVE RECOMMENDATION It is recommended the Village Council Approve the Resolution determining the proposed millage rate of 1.9654 mills, and first budget hearing on September 12, 2017, at 7:00 p.m ., and the second budget hearing on September 18, 2017, at 7:00 p.m., in the Village Council Chamber per Florida Statutes (F.S.) 200.065. The proposed millage rate is consistent with the current fiscal year rate, and is sufficient to balance Preliminary Proposed General Fund Budget for FY 2017-18, while accounting for basic inflationary impacts due to retirement, and insurance related increases; as well as set aside sums to consider significant capital project opportunities in a pay-as-you go manner.
INTRODUCTION The Miami-Dade County Property Appraiser provides municipalities with a certification of Assessment Roll Values for the upcoming fiscal year on July 01, each year . Pursuant to Florida Statutes (F.S) 200.065, within thirty-five (35) days of certification of value, each taxing authority shall advise the Property Appraiser of its proposed millage rate, of its rolled-back rate, and of the date, time, and place at which its first public budget hearing will be held to consider the proposed millage rate and tentative budget. This requires the setting of the preliminary millage rate, and establishing the date and time for the budget hearing at the July Village Council meeting. It should be noted that setting the preliminary millage rate is simply an initial step in our budget process. The preliminary millage rate or ceiling declared by Village Council, cannot be increased without extraordinary efforts per Florida Statutes 200.065(4)d during the budget hearings but it can be decreased or remain unchanged. AGENDAITEM
R7A
July 18, 2017 Regular Council Meeting Re: Millage Rate for FY 2017-18 Page 2 of 4
The proposed resolution also sets the hearing date for the First Budget Hearing in September 2017. F.S. 200.065.4(e) 2, requires the hearings shall be held after 5 p.m. and cannot conflict with the budget hearing dates for the Miami-Dade County School Board scheduled to take place on July 26th and September 6th, and Miami-Dade County scheduled to take place on September 5th and September 19th. Therefore, we recommend holding the Fiscal Year 2017-18 Bal Harbour Village Budget Hearing on Tuesday, September 12th, at 7:00 p.m. in the Council Chambers, with the second and final Budget Hearing scheduled for Monday, September 18th , at 7:00 p.m. in the Council Chambers, consistent with the "Council Date" item also included on this agenda . Establishment and adherence to these dates allow for statutorily required advertising deadlines for the establishment of Ad Valorem millage and Non Ad Valorem assessment rates. TAX ROLL, MILLAGE RATE, AD VALOREM REVENUE, AND ROLLED-BACK RATE
The tax roll certified by the Miami-Dade County Property Appraiser on July 01, 2017 is $5,314,206,510, which includes an addition of $810,208,807 in new construction and improvements. At the current and proposed tentative millage rate of 1.9654 mills , and calculated at 95% of the adjusted taxable value certified as required per F.S. 200.065(1 )(a)1, the ad valorem revenue generated is $9,922,314, resulting in an increase of approximately $1,643,900, of tax revenue villagewide over current y_ ear ad valorem budgeted revenue of $8,278,400 . The rolled-back rate for FY 2017-18 would be 1.8933 mills. The . rolled-back rate, calculated as required by the Florida State Department of Revenue will provide the same ad valorem tax revenue as levied during the prior year exclusive of new construction and improvements . The preliminary proposed millage rate of 1.9654 mills is 3.81 % higher than the current year aggregate roll-back rate . The state required methodology for calculating the rolled back rate requires the use of the current year gross roll value . Proposed Millage Rate History & Analysis Since FY 2007 the millage rate for the Village has dropped significantly, by 32.27% from 2.9020 mills to 1.9654 mills for the current and proposed tentative millage rate for FY 201718; resulting in no proposed millage adjustment for the upcoming fiscal year. The following chart reflects the millage rates from FY 2006 through FY 2017, and the continuation of the existin rate for FY 2018 :
Bal Harbour Village Millage
July 18, 2017 Regular Council Meeting Re: Millage Rate for FY 2017-18 Page 3 of 4
Currently, the FY 2016-17 adopted millage rate for Bal Harbour Village is the third lowest millage rate in Miami-Dade County as compared to other municipal rates. It is the only long established municipality within the grouping of the lowest eight millage rates for Miami-Dade County cities. The following chart reflects the 2017 adopted millage rates for Miami-Dade County municipalities. FY 2017 Municipal Millage Rates Biscayne Park Opa-lo cka El Portal North Miami Miami Shores Miami
-----------------------------------------------------------------------------------·.::::::::::::::::::::::::::::::::::.-
9.7000 10.0000 8.3000 7.5000 7.9000 7.6465
Indian Creek Miami Springs Golden Beach Florida City Miami Gardens West Miami North Miami Beach
-------------------------------------------------------------------... --------------·.:::::::::::::::::::::::::::::-
7.5000 7.5000 7.2748 7.1858 6.9363 6.8858 6.5000
Hialeah Homestead Miami Beach Medl ey Coral Gables North Bay Village Hialeah Gardens Virginia Gardens Surfside Bay Harbour Islands South Miami Key Biscayne Sweetwater Sunny Isles Beach Palmetto Bay Cutler Bay Miami Lakes Pinecrest Bal Harbour Doral Aventura
--------------· ----------------------------------------------------------------· ---------------------------------------------------------------------· --------------------· ----• ----· ----
0.0000
6.3018 5.9215 5.7092 5.5791 5.5590 5.3834 5.1613 5.1500 5.0144 4.4000 4.3000 3.0000 2.7493 2.4000 2.3292 2.3907 2.3353 2.3000 1.9654 Bal Harbour FY2017-18 Proposed Millage Rate 1.9654 mills 1.9000 1.7261 2.0000
4.0000
6.0000
8.0000
10.0000
12.0000
It is recommended that Village Council tentatively set a preliminary millage rate for Fiscal Year 2017-18, at 1.9654 mills, a rate which is $1.9654 per $1,000 of assessed property value. The proposed tentative millage rate, calculated at 95% for budget purposes , and based upon the July 01, 2017 estimated adjusted Taxable Value as provided by the MiamiDade County Property Appraiser is anticipated to yield $9 .922 million, respectively for FY 2017-18. The recommended FY 2017-18 preliminary millage ceiling outlined for your consideration allows the Village to retain a historically very low rate, in addition to providing for coverage of anticipated inflationary impacts for retirement and insurance related increases, the continued provision of the current level of municipal services, funding for a budget stabilization line item to mitigate value adjustment board impacts experienced in the last two fiscal, and additional pay-as-you go funds toward future capital projects.
July 18, 2017 Regular Council Meeting ·Re: Millage Rate for FY 2017-18 Page 4 of 4
In developing a budget, we must look at available revenues, expected experrses, potential enhancements, and opportunities for cost savings or efficiencies . By setting an appropriate millage ceiling we establish the first parameter in the development of the FY 2017-18 Operating Budget. It is important to set a level that offers appropriate opportunities to make wise choices leading to the adoption in September of the final Budget. FY 2017-18 budget development, is a time to refocus resource allocation in a strategic manner with a focus on results-oriented management practices . In the coming weeks, we anticipate receipt of revenue estimates from the State of Florida Department of Revenue for Communication Service Taxes, from Florida Power & Light Franchise Fees and Utility Taxes, from our wholesale utility services providers, water and sewer rate increases; this information will present a more complete picture of the estimated revenues for the coming Fiscal Year . A year, which we will advance the needs of the community with an emphasis on efficiency, service delivery, and accountability; while addressing the little things that mean so much to our community.
Budget Advisory Committee Recommendation The Budget Advisory Committee (BAC) as appointed by Village Council met on July 11th, to consider the tentative millage rate, to make appropriate recommendations for the Council's to consideration . The Committee reviewed end of year FY2016, and mid-year FY2016 amendments and projections, and line items of major operating departments is ongoing for FY 2018. At their July 11th meeting, the BAC provided a recommendation that the Council set a tentative millage rate of 1.9654mills, this recommendation is consistent with the administrative millage recommendation .
Conclusion In conclusion, we are required to establish a preliminary millage ceiling, and to establish the date, time and place for the Fiscal Year 2017-18 Village First Public Budget Hearing. A millage rate of 1.9654 mills is recommended; as is the hearing date of Tuesday, September 12, 2017 at 7:00 p.m. for the first Budget Hearing, and September 18, 2017 at 7:00 p.m. for the second Budget Hearing both in the Village Hall Council Chambers .
VILLAGE
-
COUNCIL MEMORANDUM
TO:
Honorable Mayor and Village Council
FROM:
Jorge M. Gonzalez, Village Manager
\~
DATE:
July 18, 2017
U
SUBJECT:
A RESOLUTION OF THE VILLAGE COUNCIL OF BAL HARBOUR VILLAGE, FLORIDA; DETERMINING THE PROPOSED MILLAGE RATE, AND THE DATE, TIME AND PLACE FOR THE FIRST BUDGET HEARING FOR FISCAL YEAR 2017-18; AS REQUIRED BY LAW; DIRECTING THE VILLAGE CLERK TO FILE SAID RESOLUTION WITH THE PROPERTY APPRAISER OF MIAMI-DADE COUNTY; AND PROVIDING FOR AN EFFECTIVE DATE.
ADMINISTRATIVE RECOMMENDATION It is recommended the Village Council Approve the Resolution determining the proposed millage rate of 1.9654 mills, and first budget hearing on September 12, 2017, at 7:00 p.m ., and the second budget hearing on September 18, 2017, at 7:00 p.m., in the Village Council Chamber per Florida Statutes (F.S.) 200.065. The proposed millage rate is consistent with the current fiscal year rate, and is sufficient to balance Preliminary Proposed General Fund Budget for FY 2017-18, while accounting for basic inflationary impacts due to retirement, and insurance related increases; as well as set aside sums to consider significant capital project opportunities in a pay-as-you go manner.
INTRODUCTION The Miami-Dade County Property Appraiser provides municipalities with a certification of Assessment Roll Values for the upcoming fiscal year on July 01, each year . Pursuant to Florida Statutes (F.S) 200.065, within thirty-five (35) days of certification of value, each taxing authority shall advise the Property Appraiser of its proposed millage rate, of its rolled-back rate, and of the date, time, and place at which its first public budget hearing will be held to consider the proposed millage rate and tentative budget. This requires the setting of the preliminary millage rate, and establishing the date and time for the budget hearing at the July Village Council meeting. It should be noted that setting the preliminary millage rate is simply an initial step in our budget process. The preliminary millage rate or ceiling declared by Village Council, cannot be increased without extraordinary efforts per Florida Statutes 200.065(4)d during the budget hearings but it can be decreased or remain unchanged. AGENDAITEM
R7A
July 18, 2017 Regular Council Meeting Re: Millage Rate for FY 2017-18 Page 2 of 4
The proposed resolution also sets the hearing date for the First Budget Hearing in September 2017. F.S. 200.065.4(e) 2, requires the hearings shall be held after 5 p.m. and cannot conflict with the budget hearing dates for the Miami-Dade County School Board scheduled to take place on July 26th and September 6th, and Miami-Dade County scheduled to take place on September 5th and September 19th. Therefore, we recommend holding the Fiscal Year 2017-18 Bal Harbour Village Budget Hearing on Tuesday, September 12th, at 7:00 p.m. in the Council Chambers, with the second and final Budget Hearing scheduled for Monday, September 18th , at 7:00 p.m. in the Council Chambers, consistent with the "Council Date" item also included on this agenda . Establishment and adherence to these dates allow for statutorily required advertising deadlines for the establishment of Ad Valorem millage and Non Ad Valorem assessment rates. TAX ROLL, MILLAGE RATE, AD VALOREM REVENUE, AND ROLLED-BACK RATE
The tax roll certified by the Miami-Dade County Property Appraiser on July 01, 2017 is $5,314,206,510, which includes an addition of $810,208,807 in new construction and improvements. At the current and proposed tentative millage rate of 1.9654 mills , and calculated at 95% of the adjusted taxable value certified as required per F.S. 200.065(1 )(a)1, the ad valorem revenue generated is $9,922,314, resulting in an increase of approximately $1,643,900, of tax revenue villagewide over current y_ ear ad valorem budgeted revenue of $8,278,400 . The rolled-back rate for FY 2017-18 would be 1.8933 mills. The . rolled-back rate, calculated as required by the Florida State Department of Revenue will provide the same ad valorem tax revenue as levied during the prior year exclusive of new construction and improvements . The preliminary proposed millage rate of 1.9654 mills is 3.81 % higher than the current year aggregate roll-back rate . The state required methodology for calculating the rolled back rate requires the use of the current year gross roll value . Proposed Millage Rate History & Analysis Since FY 2007 the millage rate for the Village has dropped significantly, by 32.27% from 2.9020 mills to 1.9654 mills for the current and proposed tentative millage rate for FY 201718; resulting in no proposed millage adjustment for the upcoming fiscal year. The following chart reflects the millage rates from FY 2006 through FY 2017, and the continuation of the existin rate for FY 2018 :
Bal Harbour Village Millage
July 18, 2017 Regular Council Meeting Re: Millage Rate for FY 2017-18 Page 3 of 4
Currently, the FY 2016-17 adopted millage rate for Bal Harbour Village is the third lowest millage rate in Miami-Dade County as compared to other municipal rates. It is the only long established municipality within the grouping of the lowest eight millage rates for Miami-Dade County cities. The following chart reflects the 2017 adopted millage rates for Miami-Dade County municipalities. FY 2017 Municipal Millage Rates Biscayne Park Opa-lo cka El Portal North Miami Miami Shores Miami
-----------------------------------------------------------------------------------·.::::::::::::::::::::::::::::::::::.-
9.7000 10.0000 8.3000 7.5000 7.9000 7.6465
Indian Creek Miami Springs Golden Beach Florida City Miami Gardens West Miami North Miami Beach
-------------------------------------------------------------------... --------------·.:::::::::::::::::::::::::::::-
7.5000 7.5000 7.2748 7.1858 6.9363 6.8858 6.5000
Hialeah Homestead Miami Beach Medl ey Coral Gables North Bay Village Hialeah Gardens Virginia Gardens Surfside Bay Harbour Islands South Miami Key Biscayne Sweetwater Sunny Isles Beach Palmetto Bay Cutler Bay Miami Lakes Pinecrest Bal Harbour Doral Aventura
--------------· ----------------------------------------------------------------· ---------------------------------------------------------------------· --------------------· ----• ----· ----
0.0000
6.3018 5.9215 5.7092 5.5791 5.5590 5.3834 5.1613 5.1500 5.0144 4.4000 4.3000 3.0000 2.7493 2.4000 2.3292 2.3907 2.3353 2.3000 1.9654 Bal Harbour FY2017-18 Proposed Millage Rate 1.9654 mills 1.9000 1.7261 2.0000
4.0000
6.0000
8.0000
10.0000
12.0000
It is recommended that Village Council tentatively set a preliminary millage rate for Fiscal Year 2017-18, at 1.9654 mills, a rate which is $1.9654 per $1,000 of assessed property value. The proposed tentative millage rate, calculated at 95% for budget purposes , and based upon the July 01, 2017 estimated adjusted Taxable Value as provided by the MiamiDade County Property Appraiser is anticipated to yield $9 .922 million, respectively for FY 2017-18. The recommended FY 2017-18 preliminary millage ceiling outlined for your consideration allows the Village to retain a historically very low rate, in addition to providing for coverage of anticipated inflationary impacts for retirement and insurance related increases, the continued provision of the current level of municipal services, funding for a budget stabilization line item to mitigate value adjustment board impacts experienced in the last two fiscal, and additional pay-as-you go funds toward future capital projects.
July 18, 2017 Regular Council Meeting ·Re: Millage Rate for FY 2017-18 Page 4 of 4
In developing a budget, we must look at available revenues, expected experrses, potential enhancements, and opportunities for cost savings or efficiencies . By setting an appropriate millage ceiling we establish the first parameter in the development of the FY 2017-18 Operating Budget. It is important to set a level that offers appropriate opportunities to make wise choices leading to the adoption in September of the final Budget. FY 2017-18 budget development, is a time to refocus resource allocation in a strategic manner with a focus on results-oriented management practices . In the coming weeks, we anticipate receipt of revenue estimates from the State of Florida Department of Revenue for Communication Service Taxes, from Florida Power & Light Franchise Fees and Utility Taxes, from our wholesale utility services providers, water and sewer rate increases; this information will present a more complete picture of the estimated revenues for the coming Fiscal Year . A year, which we will advance the needs of the community with an emphasis on efficiency, service delivery, and accountability; while addressing the little things that mean so much to our community.
Budget Advisory Committee Recommendation The Budget Advisory Committee (BAC) as appointed by Village Council met on July 11th, to consider the tentative millage rate, to make appropriate recommendations for the Council's to consideration . The Committee reviewed end of year FY2016, and mid-year FY2016 amendments and projections, and line items of major operating departments is ongoing for FY 2018. At their July 11th meeting, the BAC provided a recommendation that the Council set a tentative millage rate of 1.9654mills, this recommendation is consistent with the administrative millage recommendation .
Conclusion In conclusion, we are required to establish a preliminary millage ceiling, and to establish the date, time and place for the Fiscal Year 2017-18 Village First Public Budget Hearing. A millage rate of 1.9654 mills is recommended; as is the hearing date of Tuesday, September 12, 2017 at 7:00 p.m. for the first Budget Hearing, and September 18, 2017 at 7:00 p.m. for the second Budget Hearing both in the Village Hall Council Chambers .
