The town of Miami Lakes commences the 2014-2015 fiscal year with a $1 million budget deficit caused by a reduction in franchise and utilities revenues and increased public safety costs conceivably scaling back on some of its original plans for beautification and parks and recreation, among other municipal services.
Lawmakers chose to keep the 2.3581 tax rate which would generate $5.7 million in property tax revenues, but a $400,000 reduction in franchise and utilities fees and a $600,000 increase for police services left Miami Lakes scrambling for a solution to offset the shortfall.
Reinstating the solid waste franchise fee and increasing building and zoning fees and cutting some expenses were some of the options the town can pursue to close the financial gap.
At a budget workshop, the town’s finance director, Andrea M. Agha, said it was difficult to balance the $14 million budget with less revenues and a four percent increase, $7.2 million, in police services with Miami-Dade County.
The budget changes also left Miami Lakes uncertain over revenue projections for 2015 and 2016.
But she recommended some alternatives to help get the town back on track by taking a “service level budget” approach by financing less significant services on a three-year, four-year or five-year plan to minimize the impact on the spending plan.
For example, right-of-way irrigation and maintenance, and tree trimming, town officials would identify the level of services that would either save them money or push the budget.
With about $2.4 million earmarked for parks and recreation, including $826,000 in field maintenance, Agha said town officials can opt for maintaining the baseball fields at Miami Lakes Optimist and Royal Oaks parks in four or five years.
However, construction of the new Optimist clubhouse estimated at $411,587 and $1 million for the new youth center at Miami Lakes Picnic Park East, which should be completed in 2015, proceed without any financial setbacks.
To close the budget deficit, Agha has recommended Miami Lakes impose a five percent solid waste franchise fee that the town suspended in 2001, bringing in additional $50,000 in revenues to offset the cost of roadway and maintenance improvements.
For business tax receipts, the town may want to do a study on the impact of imposing higher fees for big companies, while reducing or eliminating fees for small business while maintaining comparable rate structures to neighboring communities.
However, the overall increase cannot exceed 10 percent of gross revenues in the year following the adoption of any changes, according to state law which requires a equity study, Agha said.
“If the big companies can afford to pay more it would reduce the burden on the smaller businesses,” she said.
The town projects $1,075,500 in building-related fees but $1.2 million in expenses calls for increases in zoning fees and residential minimum permit fee to cover $188,956 in losses.
Agha also said Miami Lakes may want to consider a false alarm reduction program to reduce police resources responding to false alarms.
She said calls to police for false alarms decreased by more than 300 calls from 2012-2014, and the average response time has decreased as well from 6:11 minutes to 5:54 minutes.
She suggested no registration fee and no penalty for two false alarms instead of three, with a third time carrying a $25 fine and $50 for four false alarms, saving the town $7,412.
Miami Lakes’ sidewalk repair proposal can proceed as planned, as the town is expected to collect about $2 million from its share of the county’s People’s Transportation Plan half penny sales tax for transit and roadway enhancements.
For beautification, which is a priority for residents, Miami Lakes is allocating funding to enhance the entrance areas and building a new entrance feature at N.W. 67 Avenue and 138 Street.
With a fund balance of $4 million, Miami Lakes places 15 percent of the fund, $2.3 million, in emergency reserve, and an additional $500,000 reserve for hurricane emergencies.
Lawmakers will decide the fate of the town’s budget during two budget hearings, scheduled for 6 p.m. Tuesday, September 9 and Tuesday, September 23, at Miami Lakes Town Hall, 6601 Main Street.