CITY OF HALLANDALE BEACH, FLORIDA

MEMORANDUM

DATE:                       June 4, 2008

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 2008-09 and Authorizing the City Manager to Sign the Certificate of Taxable Value and Advise Appropriate Agencies of the Tentative Millage and Fire Assessment Rates

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BACKGROUND

The TRIM Bill legislation requires municipalities to submit the Certification of Taxable Value (Form DR-420) to the County Appraiser by August 4, 2008.  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

Amendment One, which was passed by the voters on January 29, 2008, impacted the City’s taxable value as follows:

1. Additional $25,000 homestead exemption above just value of $50,000 – reduced taxable value by $186,921,987
2. Portability of Save Our Homes – reduced taxable value by $4,412,986
3. $25,000 exemption for tangible personal property – reduced taxable value by $14,395,446
4. 10% cap on non-homesteaded properties – no impact until 2010

House Bill 1B, together with Implementing Bill (SB1588), requires Maximum Levy Limits for FY 2008/2009 as follows:

• Majority Vote – Rolled-back rate (RBR) adjusted for Amendment One, plus per capita personal income change (4.15%)
• For majority vote limit, must exclude impact of lost assessed value from RBR calculation
• Two-thirds Vote – 110% of Rolled-back rate adjusted for per capita personal income, without adjustment for taxable value loss
• The adjustment for lost assessed value for RBR calculation purposes is to be ignored
• Thus the 110% limit is based upon the RBR that would be calculated with the impact of lost assessed value from Amendment One (rollup, not rolldown)
• Unanimous Vote – up to 10 Mil cap

The Broward County Property Appraiser’s Office has submitted their June 1^st 2008 Estimate of Taxable Value. The rolled-back millage will be 5.6545, when extended upon the current year's adjusted taxable value of $3,483,206,190 [Gross taxable value ($4,833,868,668) minus new taxable value ($446,913,414) minus CRA dedicated increment value ($903,749,064)]. The City’s gross taxable value had a decrease of $78,696,703 (or -1.6%) from $4,912,565,371 in 2007, to $4,833,868,668 in 2008.

Based upon this information the Maximum Levy Limits for FY 2008/2009 are as follows:

• Majority Vote – can levy a millage up to 5.5607
• Two-thirds Vote – can levy a millage up to 6.4781

The City’s current millage rate is 4.9818. The millage rate staff proposes to provide to the County is 5.5607. Please 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 flexibility. The City Manager is currently reviewing the department requested budgets and there may be a need to raise the millage rate. Additionally, the figures that are presented are based on the June 1^st estimate of taxable value. The City will receive the certified taxable value on July 1^st, which will be different from the June 1^st values. These 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 hearing and the total amount to be collected from the Fire Assessment.  The costs of Fire protection services for the City continues to rise as the City’s revenue streams from other sources continues to decline. For this reason the City Manager is recommending to increase the Fire Assessment rate from $90 per year to $97 per year ($7 increase, or 7.8%) for residential classification. All other classifications will increase proportionally. At $97 the City’s rate would still be among the lowest in Broward County. For Fiscal Year 2008-09, the gross assessment of $3,647,307 will net receipts of approximately $3,537,889 or $295,994 above the current year amount of $3,241,895.

Staff proposes to conduct the Fire Assessment hearing at 6:30 p.m. on September 17, 2008 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 hearings.  The County has set its first public hearing for September 9, and its second for September 23.  The School Board has scheduled their hearing for September 4.  Please also note the City's public hearing 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:

1.  Authorize the City Manager to sign and advise the appropriate agencies of the City Commission approved proposed millage rate of 5.5607, 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,

2.   Authorize the First Public Hearing on Wednesday, September 17, 2008, at 6:30 P.M. for the Fire Assessment Hearing, the City Millage/Budget Hearing for 6:40 P.M., the Golden Isles Safe Neighborhood District Hearing at 6:45 p.m. and the Three Islands Safe Neighborhood District Hearing at 6:50 p.m.; and,

3.  Authorize the Second City Millage/Budget Public Hearing on Wednesday, September 24, 2008, at 5:05 p.m. followed by the Golden Isles Safe Neighborhood District Hearing at 5:10 p.m., followed by the Three Islands Safe Neighborhood District Hearing at 5:15 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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PML/rf