Despite an increase for the town’s biggest expenditure and other spending hikes to keep pace with the growing population and a slight demand for upgraded services, Miami Lakes tentatively kept the same rate for property taxes for 2014-2015.
But residents may pay a slight tax increase because their property values increased last year.
The 2.3518 rate would generate $5.7 million in revenues for the budget along with other revenues to offset the rising costs to resume rendering quality municipal services for the next fiscal year.
Town Manager Alex Rey released the preliminary $15.8 million budget that calls for a four percent increase to $7.2 million for police services stemming from pay raises, the elimination of the contribution to health care and an increase for fuel and overhead costs.
Miami Lakes, however, absorbed some of the financial impact by reducing police overtime, planning, legal and software expenses.
Since incorporation, Miami Lakes has a contract to use Miami-Dade County for public safety services.
At the July 8 regular Town Council meeting, lawmakers adopted the rate, which represents the fifth lowest among Miami-Dade cities, and can be reduced, but not increased, during two budget hearings.
As proposed, the 2013-2014 budget has a fund balance of $4 million in which 15 percent of the fund, $2.3 million, is required to be placed in emergency reserve, and an additional $500,000 reserved for possible hurricane-related emergencies.
According to the preliminary budget, through fund capital investments this year, the town was able to complete a list of projects for parks and green space, the second phase of the N.W. 170th Street Greenway plan, renovation for the Mary Collins Community Center, water and sewer connections and other infrastructure improvements for stormwater drainage on the west side of town and the Lake Martha, Lake Sarah and Royal Oaks neighborhoods.
In addition, with beautification a priority, the town is putting its Beautification Master Plan to work and allocated funding to enhance the entrance areas and building a new entrance feature at N.W. 67 Avenue and 138 Street.
The tax roll certified by the Miami-Dade Property Appraiser on July 1 reflects a gross taxable value of $2,574,960,124, which includes an increase of $7.1 million in new construction and improvements.
At the existing rate for property taxes, and calculated at the 95 percent used for budget purposes, the impact of the increased property values results in about $150,000 in additional revenue for the next fiscal year.
Lawmakers can choose the state’s roll back rate of 2.2258, which would provide the same ad valorem tax revenue as levied during the previous year exclusive of new construction and improvements.
Miami Lakes is projecting to receive more than $350,000 in additional revenues derived mostly from property taxes, utilities and intergovernmental, as estimated by the town. However, the state has not yet published its estimates as of July 1 for the communication tax revenues.
The town is estimating slight increases from franchise and utility taxes, business license and permit fees, state revenue sharing, half-cent sales tax and user fees for services, fines and interest income.
The additional revenues would be used to offset the increases of services due to the town’s growing population and slight demand for improved municipal services.
The town’s building department and code enforcement expenses increased by $120,000, which is needed for more hours for inspectors and an additional full-time clerk to handle the increase in demand.
The increase in permit activity is consistent with the trend in increased property values.
Miami Lakes is expecting a surplus in the current fiscal year, therefore, in order to reduce the budgetary pressure for next year, the town has recommended that some of the transfer needed to fund the capital program to be completed using the surplus from 2014, including construction of the Miami Lakes Optimist Clubhouse ($411,587) from general fund to capital parks and asset Maintenance and Management Software $65,000 from general fund to capital facilities.
The proposed budget does not include funding the general fund for various projects and initiatives that staff has been directed to implement or are necessary for operational purposes, including the Lien Amnesty program, which is self-funded, Beautification ($300,000), new police vehicles ($75,000), WiFi in the parks ($25,000), construction of a dog park ($150,000), tot-lot equipment at Royal Oaks Homeowners Association lease park ($20,000), a new canopy cover at the playground at Royal Oaks Park ($50,000), a partnership with the Fairchild Orchid Program ($30,000) and right-of-way maintenance for N.W. 57 Avenue.
For the latter project, FDOT agreed to transfer the maintenance to Miami Lakes and reimburse the town about $2,304 annually which is the agency’s cost to mow the area on a monthly mowing cycle.
The estimated cost to the town to perform complete landscape maintenance services, including mowing the area, is $23,000 a year.
Miami Lakes’ two budget hearings are scheduled for 6 p.m., Tuesday, September 9, and Tuesday, September 23, at Miami Lakes Town Hall, 6601 Main Street.