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 for the Three Islands Safe Neighborhood District 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 Rate

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BACKGROUND

The Three Islands Safe Neighborhood District will levy a millage as a Dependent Special District of the City of Hallandale Beach and must adhere to all of the requirements of the Truth-In-Millage (TRIM) Legislation.

The TRIM Bill legislation requires Dependent Special Districts to submit the Certification of Taxable Value (Form DR-420) to the County Appraiser by August 4, 2009.  This form indicates the proposed millage and the date, time and location for the First Public Hearing for the District.

DISCUSSION

The Broward County Property Appraiser’s Office has submitted their June 1^st 2009 Estimate of Taxable Value. The rolled-back millage will be .8814, when extended upon the current year's adjusted taxable value of $458,128,554 [Gross taxable value ($458,135,530) minus new taxable value ($6,976). The District’s gross taxable value had a decrease of $153,677,010 (or -25.1%) from $611,812,540 in 2008, to $458,135,530 in 2009. This taxable value loss, when calculated at the District’s current millage rate of .6600, amounts to a reduction of tax revenue of $101,427.

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 1.0944
• Two-thirds Vote (4/1) – can levy a millage up to 1.2038

The District’s current millage rate is .6600. The millage rate staff proposes to provide to the County is 1.1000.  Note that it has been the practice of the District 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 trying to maintain the District’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 District 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 District’s rolled-back rate and maximum millage rate calculations. Therefore it is prudent to set the District’s tentative millage at a higher rate than may be adopted. Once the District sets its tentative millage rate it cannot go above that rate without re-advertising.

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 Public Hearings.  The County has set its First Public Hearing for September 10, and its second for September 22.  The School Board has scheduled their Public Hearing for September 3.   Also note that the District'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 Board of Directors:

• Authorize the City Manager to sign and advise the appropriate agencies of the Board of Directors' proposed millage rate of 1.1000 and the date, time and location for the two Public Hearings; and,

• Authorize the First Public Hearing on Wednesday September 16, 2009 at 7:15 p.m. and the Second Public Hearing on Thursday, September 24, 2009 at 7:10 p.m. 

Prepared By:

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Robert Fraidenburg, Deputy Director of Finance

Reviewed:

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D. Mike Good, City Manager                                                 Date

____ Approved                       ____ Denied                            ____ Hold for Discussion

Comments:

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