CITY OF OAKLAND PARK, FLORIDA
CITY COMMISSION AGENDA ITEM REPORT
AGENDA ITEM NO.
|MEETING DATE: 7/19/2023|
|PREPARED BY: |
Andrew Thompson, CGFO
Chief Financial Officer
Rhea Rivera, CGFM
Asst. Director, Financial Services
|DEPARTMENT HEAD APPROVAL: ||FINANCIAL SERVICES|
|SUBJECT: FY24 Recommended Budget Summary|
Issue Statement: The City Commission is required to adopt and provide to the County Property Appraiser by August 4, 2023, the preliminary millage, fire, stormwater, and solid waste assessment rates to be reflected on the truth-in-millage (TRIM) notices mailed to all property owners in August. The rates to be adopted are for the fiscal year (FY) 2024, which begins October 1, 2023, and ends September 30, 2024.
Recommended Action: Staff will provide a summary of the FY 2024 Recommended Budget. Under separate agenda items, the Commission will adopt the FY 2024 preliminary millage rates (operating and debt service), and the fire, stormwater and solid waste assessment rates to be displayed on the TRIM notices.
In accordance with State statutes, the City is required to provide the County Property Appraiser with preliminary millage and assessment rates by August 4, 2023, and then conduct three hearings in September. The preliminary millage and assessment rates forwarded to the County Appraiser for inclusion on the TRIM Notice are upper limits of what the Commission may ultimately choose to adopt. There is no requirement that these preliminary rates be adopted. The rates provided on the TRIM notice may be lowered, but cannot be increased without significant additional advertising efforts, costs, and potential time delays by the City.
The current schedule to adopt the FY 2024 budget, including millage and assessment rates, is:
- April 24 - FY 2024 Community Budget Meeting held via Zoom.
- June 21 - Capital Improvement Program Update and Preview at City Commission meeting.
- July 12 - Distribution of the FY 2024 Recommended Budget book to Commission.
- July 19 - FY 2024 budget presentation; Adoption of preliminary millage and assessment rates for inclusion on the TRIM Notice. Tentative budget hearing date set.
- August 4 - Deadline for providing preliminary millage and assessment rates to the Property Appraiser for inclusion on the TRIM Notice.
- August 24 - Deadline for Property Appraiser to mail TRIM Notices (Appraiser has advised notices will be mailed beginning August 12).
- September 6 (Wednesday) - Public hearing and adoption of tentative millage rate and tentative FY 2024 budget; 1st reading of solid waste commercial rates ordinance. Final budget hearing date set. CRA Board adoption of tentative CRA budget.
- September 13 (Wednesday) - Public hearing and adoption of the fire, stormwater and residential solid waste assessment rates (to be held at 6:00 PM).
- September 20 (Wednesday) - Public hearing and adoption of final millage rate and final FY 2024 budget, CIP, staff class and compensation plan, and fiscal policies; 2nd reading of solid waste commercial rates ordinance. CRA Board adoption of final CRA budget.
The Recommended FY 2024 Annual City Budget is provided for the Commission's review. An overview will be presented at the Commission meeting.
Staff recommends that the Commission reduce the current operating millage rate from 5.8550 to 5.8362 mills for FY 2024. This operating millage rate is the lowest rate in thirteen years and the ninth reduction in operating millage over ten years. The cumulative decrease from these reductions is 0.5663 mills since FY 2024.
Staff also recommends that the Commission adopt a debt service millage rate of 0.4109 mills for the Series 2020 ($26 million) G.O. Bonds; and 0.2229 mills for the Series 2022 ($14 million) G.O. Bonds. The combined debt service millage rate is 0.6338 mills, a decrease of 9.1% compared to FY 2023.
The operating and debt millage rates combined total 6.4700 mills, a decrease of 0.0822 mills from the combined total of 6.5522 last year. Two separate millage rates will appear on the TRIM notices and tax bills - for the operating millage and for the combined debt service millage.
In preparing the recommended budget, staff utilized Commission direction and guidance as the basis for determining the programs and levels of services being proposed in the budget. The FY 2024 recommended budget is the second budget to incorporate the Strategic Plan's updated Strategic Performance Areas that were approved by City Commission last year. These priorities determine the funding levels that determine the preliminary millage rates and the preliminary fire, stormwater, and solid waste assessment rates that are being recommended for adoption in subsequent items on the agenda.
Staff recommends the Commission consider the FY 2024 Recommended Budget and provide guidance and direction as warranted. Attached to this agenda item are copies of the City Manager's Recommended FY 2024 Budget Message, a listing of FY 2024 business plan initiatives and non-infrastructure capital outlay, the draft of FY 2024 Capital Improvement Program (CIP), the FY 2024 vehicle replacement schedule and the FY 2024 staffing summary by division.
Budget data will be posted to the City's OpenGov transparency platform. Electronic copies of the budget are available upon request by contacting the City Clerk's Office or the Department of Financial Services.
It should also be noted that the City received the attached letter from the Broward Sheriff's Office (BSO) on July 10, two days prior to the publication of the budget. The letter includes a revised BSO budget for FY 2024 that incorporates the cost of benefit changes to the Florida Retirement System that had not been contemplated in BSO's original submission in May. The revised budget is $19.25 million, an increase of $300 thousand over the budget submitted in May. The revised budget request is a $1.16 million increase (6.4%) over the FY 2023 budget of $18.09 million. Due to the late submission of their revised budget, it is not incorporated as part of the Recommended Budget. Staff will review the revised BSO budget and adjustments to the FY 2024 budget will be brought to the Commission as is appropriate.
The FY 2024 Recommended Budget for all funds is approximately $142.0 million, and includes a General Fund budget of $73.0 million; CRA Fund budget of $681 thousand; Debt Service Fund of $5.8 million; Special Revenue Funds of $594 thousand; Water-Sewer Fund budget of approximately $24.0 million; Solid Waste Fund budget of $8.6 million; Storm Water Fund budget of $5.2 million; and a General Fund Capital Fund of $24.2 million which was included in the CIP presentation made to the City Commission on June 21, 2023. Total CIP including the Enterprise Funds amounts to $26.1 million. The final CIP will be presented along with the budget in September.
| ||This item is for presentation and discussion purposes only. By way of separate agenda items, the City Commission will consider and adopt resolutions establishing the preliminary operating millage, debt service millage, fire assessment, residential solid waste assessment, and stormwater assessment rates.|