Stabilization Efforts Have Truly Paid Off

Our stabilization efforts over the previous 5 years have truly paid off. These unified efforts have resulted in a balanced budget with thirty-one million dollars in undesignated reserves. This has allowed us to remain true to our mission to reduce taxes while continuing to address our many Infrastructure needs. Promises Made, Promises Kept.

At our last meeting, there were still questions being raised on the budget, regarding millage and financial data. While we had a long debate, we eventually set the tentative millage rate in a 5-0 vote. Last week, I had requested to conduct a sunshine meeting for the commission to hold a policy discussion on the items that were still being questioned. This would allow us to hopefully get to a clear and united policy going into the first hearing.

The one main issue raised was what more we could do to provide additional relief to our residents that are struggling. Thirty-one million in undesignated reserves is over the targeted amount of 16 percent of the over operating budget. The tax rate reduction to 7.5 did not use any reserves. The reduction was in the form of cuts to vacant staff positions and reductions in the cost of employee benefits and other adjustments. The tax rate reaction will provide relief as I shared with our readers last week. The issue became the proposed increase in the Fire Fee Rate.

The Fire Fee had not increased since 2018 when it was raised to $265 dollars per residential unit. This rate is a flat fee that is calculated with a formula. It takes into consideration the overall fire costs of providing services. They are calculated and 90 percent of the costs are allowed by state statute to be paid through the fee. The cost is distributed on a per foot basis and according to the type of property.

Fire Fees are assessed and utilized to pay for services rather than having all the costs budgeted into the General Fund. Our cost of Fire/EMS Services this year is twenty-three million dollars with thirteen million allocated to Fire. The only costs allowed are those that directly benefit from the protection of property. Costs within each fire class are then divided by unit counts which can be acres, residential dwelling units, or square footage. The city has typically assessed square footage for each one hundred.

The proposed rate could have been as high as $385 dollars per residential unit, but a lower rate was recommended at $347.98 per residential unit. This came to an $82.92 increase. This is a flat rate, so it is charged equally whether you own a $150,000 home or a million-dollar home. State law does not allow rates based on values.

This means that a homesteaded property at $150,000 may see a decrease in taxes but that tax relief is lost. It is not unrealized due to the Fire Fee increase.

Every city in Broward and unincorporated Broward County charges a Fire Fee. Fees vary from city to city, the highest being $758 dollars charged by Southwest Ranches to $190 dollars. The major cost drivers for fire are personnel, building maintenance, equipment, training, and vehicle replacement. A fire truck alone can cost ten million dollars or more. Rather than have that cost in one year the recommendation was to spread it out over the course of 5 years.

We debated the pros and cons of two alternatives. One was not increasing the fee but keeping the millage rate at 7.9 then 7.5. The other was to keep the 7.5 tax rate but reduce the proposed increase of eighty-two dollars. The consensus was to reduce the reduced rate.

At these meetings, no formal decisions are made. They are a way for us to meet in the sunshine setting and have open discussion to reach consensus. The actual change will need to be calculated by our professional budget staff before our hearing on Thursday.

Please feel free to contact me anytime with your questions, concerns and ideas to make our City a better place! I’m reachable at the Office: (954) 457-1318. On my Mobile/Text: (954) 632-5700. Or visit my website at: www.MayorJoyCooper.com - Working for you! Always have! Always will!