CITY OF HALLANDALE BEACH, FLORIDA

MEMORANDUM

DATE:                      June 3, 2009

TO:                           D. Mike Good, City Manager

FROM:                     Patricia Ladolcetta, Director of Finance

SUBJECT:               Consideration of Setting a Tentative Millage Rate and Fire Assessment Rate for Fiscal Year 2009-10 and Authorizing the City Manager to Sign the Certification of Taxable Value and Advise Appropriate Agencies of the Tentative Millage and Fire Assessment Rates

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BACKGROUND

The Truth-In-Millage (TRIM) Bill legislation requires municipalities to submit the Certification of Taxable Value (Form DR-420) to the County Appraiser by August 4, 2009.  Cities are required to certify in this form the rolled-back millage rate, current year proposed millage rate, and the date, time and location of the first public hearing.  

DISCUSSION

In addition to the TRIM requirements, local governments must also conform to the maximum millage limitation requirements first imposed by the legislature in 2007. The provisions for FY 2009-10 and thereafter are:

• Majority Vote (3/2) – Taxing authorities may levy a maximum millage equal to a rolled-back rate calculated using the prior year’s taxes that would have been levied if the maximum majority vote millage rate had been adopted. The City’s majority vote maximum millage rate was 5.5035 last fiscal year, however we kept our millage rate at 4.9818. If a higher rate had been adopted, the rolled-back rate would be based on the adopted rate. This millage rate is then adjusted for the change in per capita Florida personal income (2.5% for 2009-2010) to calculate the current year’s maximum majority vote millage.
• Two-thirds Vote (4/1) – Taxing authorities may levy a millage not more than 110% of the majority vote maximum millage rate.
• Unanimous Vote – up to 10 Mil cap

The Broward County Property Appraiser’s Office has submitted their June 1^st 2009 Estimate of Taxable Value. The rolled-back millage will be 5.9710, when extended upon the current year's adjusted taxable value of $3,299,022,675 [Gross taxable value ($4,120,142,696) minus new taxable value ($8,698,147) minus CRA dedicated increment value ($812,421,874)]. The City’s gross taxable value had a decrease of $759,524,606 (or -15.6%) from $4,879,667,302 in 2008, to $4,120,142,696 in 2009. This taxable value loss, when calculated at the City’s current millage rate of 4.9818, amounts to a reduction of tax revenue of almost $3.8 million.

Based upon this information the Maximum Levy Limits for FY 2009/2010 are as follows:

• Majority Vote (3/2)– can levy a millage up to 6.9112
• Two-thirds Vote (4/1) – can levy a millage up to 7.6023
• Unanimous Vote (5/0) – can levy up to 10 mil cap

The City’s current millage rate is 4.9818. The millage rate staff proposes to provide to the County is 6.9113. Note that it has been the practice of the City in the past to set the tentative millage rate higher than what was adopted for the purpose of financial adjustments. Although the City Manager is attempting to maintain the City’s millage rate at its current level it may be necessary to adjust the millage rate to balance the budget due to factors which are out the City Manager’s control. Additionally, the taxable value figures that are presented are based on the June 1^st estimate of taxable value. The City will receive the certified taxable values on July 1^st, which are often different from the June 1^st values. The July 1^st updates will impact the City’s rolled-back rate and maximum millage rate calculations. Therefore it is prudent to set the City’s tentative millage at a higher rate than may be adopted. Once the City sets its tentative millage rate it cannot go above that rate without re-advertising.

In addition to the millage rate, the City must also advise the Broward County Property Appraiser the date and time of the public hearings and the total amount to be collected from the Fire Assessment.  The cost of Fire protection services for the City continues to increase and adjustments to the Fire Assessment rate needs to be managed to pay for services rendered. For this reason the City Manager is recommending to increase the Fire Assessment rate from $97 per year to $125 per year for residential classification. All other classifications will increase proportionally. At $125 the City’s rate would still be among the lowest in Broward County. For Fiscal Year 2009-10, the gross assessment of $4,572,560 will net receipts of approximately $4,343,932 or $698,307 above the current year amount of $3,645,625.

Staff proposes to conduct the Fire Assessment hearing at 7:00 p.m. on September 16, 2009 in accordance with State Statute.

The date of the First Public Hearing by law has to be set between September 3 and September 18.  Furthermore, it cannot conflict with either the County or the School Board's budget hearings.  The County has set its First Public Hearing for September 10, and its second for September 22.  The School Board has scheduled its Public Hearing for September 3.  Also note the City's Public Hearings must be held after 5:00 p.m.

The Second Public Hearing to adopt the final millage rate must be held two to five days after advertising the Hearing and no later than October 1.  In addition, the advertisement must be within fifteen days from the First Public Hearing date.

RECOMMENDATION

The City Commission:

• Authorize the City Manager to sign and advise the appropriate agencies of the City Commission proposed millage rate of 6.9113, the total Fire Assessment to be collected as described on page one of this report and the date, time and location for the public hearings; and,

• Authorize the First Public Hearing on Wednesday, September 16, 2009, at 7:00 P.M. for the Fire Assessment Hearing, the City Millage/Budget Hearing for 7:05 P.M., the Golden Isles Safe Neighborhood District Hearing at 7:10 p.m. and the Three Islands Safe Neighborhood District Hearing at 7:15 p.m.; and,

• Authorize the Second City Millage/Budget Public Hearing on Thursday, September 24, 2009, at 7:00 p.m. followed by the Golden Isles Safe Neighborhood District Hearing at 7:05 p.m., followed by the Three Islands Safe Neighborhood District Hearing at 7:10 p.m.

Prepared By:

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Robert Fraidenburg, Deputy Director of Finance

Reviewed:

____________________________                                   ______________           

D. Mike Good, City Manager                                                      Date

____ Approved                            ____ Denied                            ____ Hold for Discussion

Comments:

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