FINANCE DEPARTMENT
M E M O R A N D U M
To: The Honorable Mayor and City
Commission
From:
By: Brian K. Raducci, Financial
Consultant
Ydia A. Forster, Interim
Finance Director
Date: September 13,
2007
Subject: Ad Valorem Tax Rate and Budget
Ordinances
To implement the comprehensive Fiscal Year 2007/08 Budget, two separate ordinances must be enacted. The first ordinance pertains to the City’s millage rate and the second adopts the City’s budget.
As originally discussed at the July 17th Commission workshop, the Administration had tentatively recommended that the Commission maintain the City’s present operating millage rate of 6.4292 (an increase/decrease of 0.0000 mils). This Tentative Millage rate reflected the maximum rate the City would be able to ultimately approve, realizing that it would be our preference to reduce it during our September budget hearings. Further, the Administration recommended decreasing our debt service millage rate from 0.2849 to .2430 (a decrease of 0.0419). As you may recall, the debt millage rate is utilized to satisfy the debt service payments related to both the 1979 and 2004 General Obligation Debt. This results in a combined total millage rate of 6.6722 (an overall decrease of 0.0419 mils).
The recommendation to maintain the prior year’s operating millage rate was due to the Property Tax Relief and Reform Plan and the uncertainty of the proposed January 29, 2008 Constitutional Amendment. However, due to the cost containment/savings measures discussed on July 17, 2007, the Administration is now recommending rolling back the 2007/08 budget millage rate to its 2006/07 level. The impact of this recommendation would be to decrease the operating millage rate from 6.4292 to 5.5307 (a decrease of 0.8985)
The rolled-back operating millage rate of 5.5307 will provide the necessary resources to fund the following proposed items:
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Police service costs
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Group health insurance
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Automobile and property insurance
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New capital projects
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New vehicles
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Salary adjustments for City employees
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Annual debt service on former Charter School
Facility
Ad valorem property taxes provide approximately 39% of the City’s General Fund revenue. This funding is vital to providing the City services as outlined in the Proposed Budget. In order to adopt the rolled-back operating millage rate, support and approval will be needed by at least four (4) of our City Commissioners (a super majority).
The ordinance approving the Administration’s recommended budget provides for spending limitations on the various City funds that are in the proposed budget. The final adopted budget will reflect any/all modifications approved by the Commission tonight and/or the final budget hearing on September 19, 2007. Attached, please find a schedule which outlines the Commission’s budgetary revisions (by consensus) that were made at the July 17, 2007 workshop.
The City Attorney’s Office has reviewed both ordinances for legal sufficiency.
Recommendation:
The Administration recommends Commission’s consideration and approval of the attached Ordinances:
ORDINANCE NO. 07-09____
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF NORTH LAUDERDALE,
FLORIDA, ESTABLISHING AND ADOPTING THE CITY OF NORTH LAUDERDALE AD VALOREM TAX
OPERATING MILLAGE LEVY RATE AT 5.5307 MILLS FOR THE 2007 TAX YEAR REPRESENTING
AN INCREASE OF 0.00% FROM THE PRIOR YEAR’S ROLLED BACK RATE, AND ESTABLISHING
AND ADOPTING THE CITY OF NORTH LAUDERDALE AD VALOREM TAX DEBT SERVICE MILLAGE
LEVY RATE AT 0.2430 MILLS FOR THE 2007
TAX YEAR, SPECIFICALLY TO SERVICE, AND ONLY TO SERVICE, THE DEBT INCURRED BY
THE NORTH LAUDERDALE 1979 AND THE 2004 GENERAL OBLIGATION BOND ISSUES, FOR A
TOTAL CITY OF NORTH LAUDERDALE 2007 TAX YEAR AD
VALOREM TAX MILLAGE LEVY RATE OF 5.7737 MILLS FOR ALL PURPOSES OR $5.7737 PER
THOUSAND DOLLARS OF TAXABLE ASSESSED PROPERTY VALUE; PROVIDING FOR CONFLICTS;
AND, PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Commission and the City Administration of the City of North Lauderdale, has reviewed the 2007/08 Fiscal Year budget for the various operating departments of the City and the means of financing said budget.
NOW, THEREFORE, BE IT ORDAINED BY THE
CITY COMMISSION OF THE CITY OF
Section 1: That the City Commission of the City of North Lauderdale, Florida, does hereby establish and adopt the City of North Lauderdale Ad Valorem Tax Operating Millage Levy Rate of 5.5307 Mills for the 2007 tax year, and does further hereby establish and adopt the City of North Lauderdale Ad Valorem Tax Debt Service Millage Levy Rate at 0.2430 Mills for the 2007 tax year, specifically to service and only to service the debt incurred by the North Lauderdale 1979 and the 2004 General Obligation Bond Issues, for a total City of North Lauderdale 2007 tax year Ad Valorem Tax Millage Levy Rate of 5.7737 Mills for all purposes or $5.7737 per thousand dollars of taxable assessed property value. This millage rate reflects an increase of 0.00% from the prior year’s rolled back rate.
Section 2: That all Ordinances or parts of Ordinances, Resolutions or parts of Resolutions in conflict herewith be and the same are hereby repealed to the extent of such conflict.
Section 3: That this Ordinance shall take effect on October 1, 2007.
PASSED on first reading by the City Commission of the City of North Lauderdale, Florida this 13th day of September, 2007.
PASSED and ADOPTED on second reading by the City Commission of the City of North Lauderdale, Florida, this _____ day of September, 2007.
APPROVED AS TO FORM: CITY ATTORNEY SAMUEL GOREN MAYOR JACK BRADY VICE MAYOR RICH MOYLE ATTEST: DEPUTY CITY CLERK PATRICIA VANCHERI