Agenda for June 18, 2008 - Staff Report for Item 6G

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 for the Three Islands Safe Neighborhood District 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 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 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, 2008. This form indicates the proposed millage and the date, time and location for the first public hearing for the District.

DISCUSSION

Amendment One, which was passed by the voters on January 29, 2008, impacted the Golden Isles Safe Neighborhood District’s taxable value as follows:

Additional $25,000 homestead exemption above just value of $50,000 – reduced taxable value by $45,364,410
Portability of Save Our Homes – reduced taxable value by $994,792
$25,000 exemption for tangible personal property – n/a
10% cap on non-homesteaded properties – no impact until 2010

The Broward County Property Appraiser’s Office has submitted their June 1^st 2008 Estimate of Taxable Value. The rolled-back millage will be .8306, when extended upon the current year's adjusted taxable value of $608,616,770. The District’s gross taxable value had a decrease of $124,314,560 (or -16.96%) from $732,931,330 in 2007, to $608,616,770 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 .8039
Two-thirds Vote – can levy a millage up to .9516

The District’s current millage rate is .6897. The millage rate staff proposes to provide to the County is .8039. Please 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 flexibility. The City Manager is currently reviewing the department requested budgets and there may be a need to raise the millage rate. 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 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 that the District'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 Board of Directors:

1. Authorize the City Manager to sign and advise the appropriate agencies of the Board of Directors' approved proposed millage rate of .8039 and the date, time and location for the two public hearings; and,

2. Authorize the First Public Hearing on Wednesday September 17, 2008 at 6:50 p.m. and the Second Public Hearing on Wednesday, September 24, 2008 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