FY 10-11 Proposed Millage7-13-101MIAMIBEACHFY 2010/11 Proposed MillageJuly 14, 2010
2FY 2010/11 Budget DevelopmentProcess began early and has been extensive•January Commission retreat•Mayor on the Move meetings•May Commission retreat •FCWPC Meetings•June 3•July 1•July 6 •July 7
3FY 2010/11 Budget DevelopmentBudget Development Strategy - a combination of approaches needed:•Employee givebacks - target of $15.3 million in employee givebacks to be achieved between FY 2009/10 and FY 2010/11•Efficiencies, and tweaking service levels •Potential new revenue sources•Tax rate adjustments – offset decline in revenue due to loss in value
4FY 2010/11 Budget DevelopmentBudget Development Strategy - Continued•Short term: Ongoing efficiencies and wage concessions by employees•Mid-term: Pension concessions from current employees•Long term: Pension plan restructures for new employees
5FY 2010/11 Budget DevelopmentBudget Development Strategy - a combination of approaches neededMillage Recapture Employee“Give-backs”Revenue Enhancements Efficiencies & Reductions Resort Tax RevisionsFY 2008/09 SurplusOther
6FY 2010/11 Budget DevelopmentPreliminary Budget Gap as of 7/6/10 = $32 million primarily due to :$13.7 M decline in property tax revenues$ 12.2M pension increase to General Fund $ 1M health insurance increase$ 2M increase in Internal Service Charges,primarily due to actuarial estimate "claimsincurred but not reported" in RiskManagement Fund$ 2.7M impact for those bargaining units that had not reached agreement with the City as of May, 2010Note: Already assumes $2M in employee givebacks in place for Unclassified and GSA salary groups.
7FY 2010/11 Proposed Millage RateRevised July 6 "Working Gap" with July 1 Certified Tax Roll –Budget Development to Continue Over the Summer$ 32 millionApproaches to BalanceEmployee Givebacks -in addition to $2M in givebacks already in CSL and $2M in other funds – but also assumes CWA for a total of $15.3M in givebacks over 2 years $ 7.8 millionRevenue Enhancements$ 1.0 millionEfficiencies and Reductions ($43M in reductions over past 3 years)$ 1.2 millionIncreased Transfers from Resort Tax to the General Fund $ 2.0 millionFY 2008/09 Year-end Surplus$ 3.6 millionOther*$ 2.7 millionMillage Recapture$ 13.7 million* Refinements to CSL, additional potential revenue enhancements, further potential service reductions
8FY 2010/11 Proposed Millage RateOperating Millage set at level to recapture $13.7 million General Fund Property Tax revenue lossFY 09/10 FY 10/11 Inc/(Dec)Operating 5.5472 6.3060 0.7588Capital Renewal & Replacement 0.1083 0.1083 0.0000Total 5.6555 6.4143 0.7588City of Miami Beach Millage RatesFY2006/07 22.74$ 7.3740FY2010/11 22.10$ 6.4143Budget YearTaxable Property Values (billions)Millage RatesGeneral Fund/RDA Millage• Millage rates almost 1 mill lower than FY 2006/07 when property value were similar to today.
9FY 2010/11 Proposed Millage RateImpact to Homesteaded Property Owners Based on 2009 Tax Roll•Approximately 40 percent should have 0 impact or even some savings•Almost 90 percent of properties are estimated to have less than a $300 annual impact
10FY 2010/11 Proposed Millage RateImpact to Homesteaded Property Owners Based on 2009 Tax RollEven for properties that have no decline in value and that are impacted by 2.7% CPI“Worst-case” scenario2009 Value Annual Impact of Operating Millage Increase of 0.7588Median $133,110 $124Average $288,709 $269
11FY 2010/11 Proposed Millage RateWith Significant Givebacks by Employees over FY 2009/10 and FY 2010/11Average Give‐Back for 2 Years Per EmployeeAFSCME$ (3,574)GSA$ (9,321)Unclassified/Others/PT (PT at 2:1)$ (9,609)CWANo Agreement to DateIAFF (Fire)$ (13,313)FOP (Police)$ (10,105)