Thursday, September 2, 2021

A penny for your thoughts. Wrapping up with the ‘realized mileage rate’. What is Palmetto Bay’s comparative property tax rate compared to the unincorporated area (UMSA) – it may surprise you: the functional total could be equivalent to 2.74 – 3.14 versus the UMSA rate of 1.9283

Here is my two cents on the millage rate issue. Taxes must be looked at on the whole. We have reviewed how the FPL franchise tax impacts the budget, but this tax goes largely unnoticed by most taxpayers.

This is an important analysis – the UMSA tax is set for 1.9283 with ZERO FPL Franchise Tax. Palmetto Bay collects both property tax and a FPL Franchise fee which, when the revenue is totaled, Palmetto Bay would have to set the property tax rate between 2.7400 to 3.1400. This impacts actual money and cost to live here. This is not theoretical numbers.

I have been attempting to discuss our Palmetto Bay taxes in a way that truly compares apples to apples which is difficult to do when so many governments at different taxes and fees and different levels. You watch your tax rate, but lose focus on items like user and franchise fees. Note that Palmetto Bay was once the 4th lowest property tax rate in Miami-Dade County, lower than UMSA. Now? We will have to wait and see.

And this is not about who is the highest, or who is the lowest. Winning is based upon efficiently delivering the level of service that the community deems appropriate. This should not be a behind the scenes decision imposed upon a community not consulted.

So I have come up with what I am calling the realized property tax millage rate – this takes into account what is actually collected by Miami-Dade County against Palmetto Bay in the two biggest taxes – property taxes as the FPL Franchise Fees.

The UMSA realized rate is a flat. Palmetto Bay’s is trending up with no analysis by the current decision makers.

The starting point for this analysis is 2019 when Palmetto Bay assessed a property tax rate of 2.2000. The proposed for this coming tax year is 2.400. Note that the rate was raised to 2.235 for last year (2020).

Property Tax Rate                UMSA                        Palmetto Bay

2021-22 budget (prop)        1.9283 Flat               2.4000 (prop add increase)

2020-2021 budget year       1.9283 Flat               2.2350  (increase)

2019-2020 budget                1.9283                       2.2000

Now, apples to apples – adding the franchise fee receipts to determine what Palmetto Bay is actually collecting if it did not employ the stealth tax of the franchise fee.

Realized Millage Rate        UMSA                         Palmetto Bay

Proposed 2021-22               1.9283                        2.4 plus the FPL Tax: 2.74 – 3.14

I see a trend here - a trend for increased taxing and spending.

I have to make assumptions as the budget is still not posted online for us, the general community, Assuming the increase is $950,000, last year's property tax was $6,894,470 the 950,000 is equal to 13.8%

The realized mileage rate: 2.40 increased to meet equals 2.74 approx. But if it was the full amount collected is raised t0 2.1 million would equal a rate of 3.14

The totals change based upon the numbers that are used. That is why transparency and communication is important.

A proper analysis requires a detailed look at the numbers – so again I raise the issue of transparency. Why isn’t this proposed budget posted on line so we can see (there are many talented numbers people who live in the village)/ Why don’t the members of the village council have a budget to review – and if they do, then why don’t we have access to these same materials?

This may be just my two cents, but I believe I offer some solid institutional knowledge concerning this government and our community that adds value to both the discussion as well as the decision. That is why enacting budgets require public hearings. But the public needs full access to the same materials that the government relies upon..

FAIR QUESTION: Is this the mayor and council that take our taxes t0 150% or more above what we would be paying as members of a greater unincorporated area? Again, I am still not included the stormwater fees that were increased by 25%.

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