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City of South Miami
Special City Commission Minutes
First Budget Hearings
September 10, 2015
A. SILENCE OR TURN OFF ALL CELL PHONES
B. ROLL CALL
10 The following members of the City Commission were present: Mayor Stoddard, Vice
11 Mayor Harris, Commissioner Welsh, Commissioner Liebman, Commissioner Edmond. (Vice
12 Mayor Harris briefly attended the beginning part of the meeting before leaving).
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14 Also in attendance were: City Manager Steven Alexander, City Attorney Thomas F.
15 Pepe, Esq., City Clerk Maria M. Menendez, CMe.
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e. MOMENT OF SILENCE
D. PLEDGE OF ALLEGIANCE
L PRESENTATIONS
City Manager
a) Memo
b) Proposed Byqget FY 16 as of 9-04-2015
The pity Manager opened the meeting explaining that by adopting the current FY
2015 millage rateOf4.3639 as the FY 2016 millage rate, it would provide the City an estimated
Ad Valorem revenueillcrease9f$306,200 based on the increase in value of property in the
City. See attached Memoranqum for further information regarding the impact of the Consumer
Price Index (CPI).
F. ORDINANCE(S) FIRST READING -PUBLIC HEARING(S)
1:. An Ordinance of the City of South Miami. located in Miami-Dade County,
Florida ("City"), approving a tentative millage rate of the City for the fiscal year
commencing October 1. 2015. through September 30. 2016 which amount
CITY COMMISSION MINUTES
September 10, 2015
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may be amended at the first or second reading. and approving and enacting
the final millage rate ofthe City on second reading. 3/5
(City Manager-Finance Dept.)
2 At the advice of the City Attorney, and before voting on the millage, the Mayor
3 explained the reason for the increase over the rollback rate: If they were to choose the rollback
4 rate, the Mayor explained, they would be significantly cutting the amount of money the City
5 has at its disposal for providing municipal services. However, by keeping the millage at the
6 same rate, or reducing it slightly, the City would be able to keep taxes flat for residents and
7 actually improve municipal services. Therefore, the City of South Miami rollback rate is 4.0235,
8 and the current millage is 4.3639. The percentage difference between the tentative millage rate
9 and the rollback rate is 8.46%.
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Moved by Mayor Stoddard, seconded by.Commissioner Liebman,the motion to remove
from the table, and to approve An Ordinance ofthe City of South Miami, located in Miami-Dade
County, Florida ("City"), approving atentative millage';~ate~f1:he City for the fiscal year
commencing October 1, 2015, through September 30,2016 which amount may be amended at
the first or second reading, and approyingand enacting the final millage rate of the City on
second reading, passed by a 4 -0 vote:
Yea:
Nay:
Mayor Stoddard
CommisSioner Welsh
Commissioner Liebman
Commissioner Edmond
None
2. An Ordinance of the City of South Miami, located in Miami-Dade County,
Florida ("City"),approving a proposed budget for the City for the fiscal year
c;pmmencing October 1, 2015, through September 30, 2016, which amount
mllY be amended at the first or second reading of this Ordinance, and
approving and enacting the final budget on second reading. 3/5
(City Manager-Finance Dept.)
21 At the opening of the public hearing, the following individual(s) addressed the
22 Commission: Bradley Cassel, Angel Axelrad, Gray Read, Marice Chael.
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24 The Commission discussed the proposed budget in terms of looking for ways for
25 bringing the millage rate down, and the following line items were discussed and explained by
26 staff, among others, such as: Contractual Services under the Planning Department; Contractual
27 Services under Engineering; Contractual Services under Parks Landscape; Contractual Services
CITY COMMISSION MINUTES
September 10, 2015
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1 under Code. There was a question regarding the increase in the fuel line item under Code
2 Enforcement since they now have more efficient cars that should bring the fuel line item down.
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4 At the end of the discussion, and because there was a consensus among the
5 Commission for reducing the millage rate, Mayor Stoddard then proposed conducting a straw
6 poll for tentatively reducing the millage rate to 4.3000, while adopting the budget as presented
7 in order to allow the City Manager certain flexibility with the reductions. The Commission
8 unanimously agreed.
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10 At this time this item was moved to be tabl~dby Mayor Stoddard, seconded by
11 Commissioner Liebman. The motion to table passed unanimously.
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13 Moved by Mayor Stoddard, seconded by Commissioner Liebman, the motion to move
14 the item from the table, and to approve An Ordinance of the City of South Miami, located in
15 Miami-Dade County, Florida ("City"), approving a proposed budget for theqity for the fiscal
16 year commencing October 1, 2015, through September 30,2016, which amount may be
17 amended at the first or second reading of this Ordinance, and approving and enacting the final
18 budget on second reading, passed bya 4 -0 vote:
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Yea:
Nay:
G. ADJOURNMENT
Attest
Maria M. Menendez
City Clerk
CITY COMMISSION MINUTES
September 10, 2015
Mayor Stoddard
Commissioner Welsh
Commissioner Liebman
Commissioner Edmond
None
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Approved
Philip K. Stoddard
Mayor
'. . t. ,
(i)
South'MJami
THE,ctTYQF PLEASANT LIVING
CITY OF SOUTH MIAMI
OFFICE OF THE CITY MANAGER
INTER-OFFICE MEMORANDUM
To: The Honorable Mayor, Vice Mayor and Members of the City Commission
From: Steven Alexander, City Manager
Date: September 10, 2015 Agenda Item: ___ _
Subject: FY 2015-2016 Levy of Millage Rate and Consumer Price Index (CPI)
Adopting the current FY 2015 millage rate of 4.3639 as the FY 2016 millage rate would provide
the City an estimated Ad Valorem revenue increase of $306,200 based on the increase in value
of property in the City.
When the Consumer Price Index (CPI) for Miami-Ft. Lauderdale, (as established by the Federal
Government and reported by the Bureau of Labor Statics -U.S. Department of Labor), is
applied, the actual net increase in revenues to the City, this year over last year, is $25,997.
The Consumer Price Index (CPI) is generally the best measure for adjusting payments to
consumers when the intent is to allow consumers to purchase at today's prices, a market
basket of goods and services equivalent to one that they could purchase in an earlier period.
See the attached Consumer Price Index (CPI) for Miami-Ft. Lauderdale, as established by the
Federal Government and reported by the Bureau of Labor Statics -U.S. Department of Labor.
Below is a calculation showing the additional cost to the City of providing exactly the same
expenditures identified in the FY 2015 approved budget, for the same expenditures in the
upcoming FY.
For example, if playground equipment is in the current budget year at an estimated $50,000,
then the value of that same equipment will cost the City, in the following year an estimated
$50,600.
In summary, when the current CPI index of 1.2% is applied, the City would have to receive an
additional $280,230 in FY 2016, simply to maintain the same level of service that was approved
and provided in FY 2015.
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Appropriation Comparison (FYs) Amount
ADOPTED
FY 2015 CPI1.2%
General Fund 17,659,802 $211,918
Stormwater Drain Trust Fund 351,729 $4,221
Local Option Gas Tax 285,000 $3,420
Hometown Improvement Fund 0 $0
Parks & Recreation Facilities Impact Fee
Fund 0 $0
Tree Trust Fund 0 $0
Peoples Transportation -Transportation 1,560,000 $18,720
Peoples Transportation -Transit 0 $0
Revenue Stabilization Fund 0 $0
Grant Match Fund 0 $0
Insurance Reserve Fund 0 $0
Tax Equalization Reserve Fund 0 $0
Building Capital Reserve Fund 0 $0
Park Acquisition Development Ops & Maint
Fund 0 $0
Debt Service 1,247,827 $14,974
Capital Improvement Program 1,328,439 $15,941
Emergency Reserve 0 $0
State Forfeiture 30,000 $360
Federal Forfeiture 887,432 $10,649
TOTAL 23,350,229 $280,203
BLS
j3UREAU OF L/l.BOR STATISTICS
U.S. pEPARTMENT OF MIlOR
NEWS RELEASE
For Release: Friday, July 17, 2015 15-1407-ATL
SOUTHEAST INFORMATION OFFICE: Atlanta, Ga.
Technical information: (404) 893-4222 ' BLSlnfoAtlanta@bls.gov ' www.bls.gov/regions/southeast
Media contact: (404) 893-4220
Consumer Price Index, Miami-Fort Lauderdale -June 2015
Area prices up 0.4 percent over the two months and 1.2 percent over the year
The Consumer Price Index for All Urban Consumers (CPI-U) for Miami increased 0.4 percent over the May-
June pricing period, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Janet S.
Rankin noted that the energy index advanced 2.8 percent over the two months. The all items less food and
energy index edged up 0.2 percent and the food index increased 0.5 percent during the two-month pricing
period. (Data in this report are not seasonally adjusted. Accordingly, month-to-month changes may reflect the
impact of seasonal influences.)
Over the last 12 months, the CPI-U rose 1.2, percent reflecting annual increases in several categories,
including shelter, medical care, and other goods and services. The index for all items less food and energy
advanced 3.2 percent over the year. (See chart 1 and table 1.)
Chart 1,. 1'2.!month percent change in CPI for All' Urban Consumers (CPI-U), MiamicFort
Lauderdale,. June 201'2-JUne 2015
Pel1Centdhanpt
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1
o
-t>J1 !items less moo and 'fmergy
Jun'12 Sep'1'2 OeC'12 'lotat13 Jun'13 Se,p/13 O,eC'13 i,Maf14 Jull'14 'Sep'14 OeC'14 Ma~15 J~n'1'5
Soorce:!l!l.S. Blireau ,oflatlllrStati&tics.
Food
Food prices rose 0.5 percent during the May-June pricing period, led by a 0.7-percent price increase for food
at home. Prices for food away from home edged up 0.2-percent over the two months.
From June 2014 to June 2015, the food index rose l.9 percent, as prices advanced for both food away from
home (3.9 percent) and food at home (0.8 percent).
Energy
The energy index increased 2.8 percent during the two month pricing period, reflecting an 8.0-percent rise in
motor fuel prices since April. Prices for utility (piped) gas service were up 2.7 percent, while prices for
electricity were down 2.5 percent.
Over the year, the energy index fell 16.3 percent largely due to a 24.3-percent drop in prices for motor fuel.
Prices also declined over the year for both electricity (-4.7 percent) and utility (piped) gas service (-5.4
percent).
All items less food and energy
The index for all items less food and energy edged up 0.2 percent over the May-June pricing period, as price
increases for indexes including medical care (3.2 percent) were offset by a seasonal price decline for apparel
(-3.2 percent).
Over the year, the index for .all items less food and energy advanced 3.2 percent. Price increases were noted
for several categories including shelter (4.0 percent), medical care (5.9 percent), and other goods and
services (7.3 percent).
Table A. Miami metropolitan area CPI-U 2-month and 12-month percent changes, all items index, not
seasonally adjusted
2010 2011 2012 2013 2014
Month 12-12-12-12-12-
2015
2-month month 2-month month 2-month month 2-month month 2-month month 2-mqnth 12-month
February ............. -0.2 0.9 1.1 2.2 1.0 2.9 1.5 1.9 1.2 1.6 0.3 0.4
April •.....•••••..•.•.. 0.1 0.9 1.8 4.0 0.9 2.0 -0.2 '0.9 0.7 2.5 0.8 0.5
June ..•............... -0.1 0.4 -0.1 4.0 -0.9 1.2 -0.1 1.6 -0.3 2.4 0.4 1.2
August. ......••..•.•. 0.2 0.7 0.7 4.5 0.9 1.4 -0.2 0.6 -0.1 2.4 --
October ...•....•.•.•• 0.4 0.5 -0.3 3.8 0.3 2.0 0.6 0.9 0.4 2.2 --
December ........... 0.6 0.9 -0.1 3.1 -0.7 1.4 0.2 1.9 -0.6 1.4 --
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The Consumer Price Index for July 2015 is scheduled to be released ou Wednesday, August 19,2015.
Technical Note
The Consumer Price Index (CPI) is a measure of the average change in prices over time in a fIxed market
basket of goods and services. The Bureau of Labor Statistics publishes CPIs for two population groups: (1) a
CPI for All Urban Consumers (CPI-U) which covers approximately 89 percent of the total population and (2)
a CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers 28 percent of the total
popUlation. The CPI-U includes, in addition to wage earners and clerical workers, groups such as
professional, managerial, and technical workers, the self-employed, short-term workers, the unemployed,
and retirees and others not in the labor force.
The CPI is based on prices of food, clothing; shelter, and fuels, transportation fares, charges for doctors' and
dentists' services, drugs, and the other goods and services that people buy for day-to-day living. Each month,
prices are collected in 87 urban areas across the country from about 6,000 housing units and approximately
24,000 retail establishments-department stores, supermarkets, hospitals, fIlling stations, and other types of
stores and service establishments. All taxes directly associated with the purchase and use of items are
included in the index.
The index measures price changes from a designated reference date (1982-84) that equals 100.0. An increase
of 16.5 percent, for example, is shown as 116.5. This change can also be expressed in dollars as follows: the
price of a base period "market basket" of goods and services in the CPI has risen from $10 in 1982-84 to
$11.65. For further details see the CPI home page on the Internet at www.bls.gov/cpi and the BLS Handbook
of Methods, Chapter 17, The Consumer Price Index, available on the Internet at
www.bls.gov/opublhomlhomchI7 a.htrn.
In calculating the index, price changes for the various items in each location are averaged together with
weights that represent their importance in the spending of the appropriate population group. Local data are
then combined to obtain a U.S. city average. Because the sample size of a local area is smaller, the local area
index is subject to substantially more sampling and other measurement error than the national index. In
addition, local indexes are not adjusted for seasonal influences. As a result, local area indexes show greater
volatility than the national index, although their long-term trends are quite similar. NOTE:Area indexes do
not measure differences in the level of prices between cities; they only measure the average change in
prices for each area since the base period.
The Miami-Fort Lauderdale, FI. consolidated area covered in this release is comprised of Broward and
Miami-Dade Counties in Florida.
InfOimation in this release will be made available to sensory impaired individuals upon request. Voice phone:
(202) 691-5200; Federal Relay Service: (800) 877-8339.
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Table 1. Consumer Price Index for All Urban Consumers (CPI-U): Indexes and percent changes for selected
periods Miami-Fori Lauderdale, FL (1982-84=100 unless otherwise noted) .
Indexes
Percent change from-
Item and Group Apr. May Jun. Jun. Apr. May
2015 2015 2015 2014 2015 2015
Expenditure category
All Items •....•.••.•..........•.........•...••....•....•.•....•••••. 245.195 -246.245 1.2 0.4 -
All Items (November 1977=100) ............................... 395.220 -396.913 ---
Food and beverages .......................................... 255.563 -256.580 1.9 0.4 -
Food ........................................................... 257.9n -259.252 1.9 0.5 -
Food at home .............................................. 254.634 254.785 256.378 0.8 0.7 0.6
Food away from home ... : ................................ 266.195 -266.691 3.9 0.2 -Alcoholic beverages ......................................... 222.789 -219.386 1.5 -1.5 -
Housing ......................................................... 247.014 -246.268 2.9 -0.3 -Shelter ......... : .............................................. 277.859 276.833 277.626 4.0 -0.1 0.3
Rent of primary residence (1) ............................. 271.326 270.038 270.360 5.4 -0.4 0.1
Owners' equlv. rent of resIdences (1) (2) ••••••••.••••••.. 279.234 278.712 279.564 3.4 0.1 0.3
Owners' equiv. rent of primary residence (1) (2) ••••••• 279.234 278.712 279.564 3.4 0.1 0.3
Fuels and utilities ............................................ 175.066 -171.515 -4.2 -2.0 -
Household energy ......................................... 153.492 149.343 149.553 -4.9 -2.6 0.1
Energy services (1) ...................................... 150.094 146.222 146.439 -4.7 -2.4 0.1
Electricity (1) ............................................ 146.657 142.775 142.961 -4.7 -2.5 0.1
Utility (piped) gas service (1) ••••••••••••••••••••••••• 200.394 203.343 205.708 -5.4 2.7 1.2
Household furnishings and operations .................... 163.508 -162.812 0.9 -0.4 -
Apparel. ......................................................... 147.829 -143.031 2.4 -3.2 -
Transportation .................................................. 215.452 -221.433 -7.2 2.8 -
Private transportation ....................................... 218.229 -224.079 -7.3 2.7 -
Motorfuel. .................................................. 230.931 241.555 249.471 -24.3 8.0 3.3
Gasoline (all types) •..••............••.........• ~ •.••••.. 228.186 238.703 246.546 -24.3 8.0 3.3
Unleaded regular (3) •.....••••••••••..••••••••••••..••• 225.486 236.422 244.158 -24.6 8.3 3.3
Unleaded midgrade (3) (4) •.•••••••..•..•••••••••.....• 222.499 227.751 235.411 -23.4 5.8 3.4
Unleaded premium (3) ................................. 240.190 247.691 256.064 -21.7 6.6 3.4
Medical Care ................................................... 441.767 -455.954 5.9 3.2 -Recreation (5) •••••••..•..••••••••••.••.••••••.••••••••••••••••. 114.676 -115.452 0.8 0.7 -Education and communication (5) ...••••••••••.••••••••••••. 127.402 -127.498 1.0 0.1 -
Other goods and services .................................... 338.414 -337.519 7.3 -0.3 -
Commodity and service group
Ailitems ........................................................... 245.195 -246.245 1.2 0.4 -
Commodities ................................................... 200.686 -202.240 -2.7 0.8 -
Commodities less food & beverages ...................... 167.683 -169.518 -6.3 1.1 -
Nondurables less food & beverages ..................... 200.320 -202.847 -8.8 1.3 -
Durables .................................................... 133.226 -134.249 -0.9 0.8 -
Services .................................. : ...................... 279.936 -280.642 3.3 0.3 -
Special aggregate Indexes
All items less medical care ..................................... 236.431 -237.068 0.9 0.3 -
All items less shelter ............................................ 228.156 -229.912 -0.7 0.8 -
Commodities less food .......................................... 169.963 -171.650 -6.0 1.0 -
Nondurables ...................................................... 229.764 -231.546 -3.1 0.8 -
Nondurables less food .......................................... 201.948 -204.170 -8.3 1.1 -
Services less rent of shelter (2) ..••••••••••••.•••••••••.•....•• 290.982 -293.181 2.1 0.8 -Services less medical care services ........................... 267.268 -267.189 3.1 0.0 -
Energy ............................................................ 187.572 189.432 192.811 -16.3 2.8 1.8
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Table 1. Consumer Price Index for All Urban Consumers (CPI-U): Indexes and percent changes for selected
periods Miami-Fort Lauderdale, FL (1982-84=100 unless otherwise noted) -Continued
Indexes
Percent change from~
Item and Group Apr. May Jun. Jun. Apr. May
2015 2015 2015 2014 2015 2015
AJI items less energy •.•.••••••••..••••.••...•. ,' .••••••••••••••• 251.742 -252.321 3.0 0.2
All items less food and energy ..•......••••.•...•••..•....... 250.538 -250.988 3.2 0.2
(1) This index series was calculated using a Laspeyres estimator. All other item stratum index series were calculated using a geometric means
estimator.
(2) Index is on a November 1982=100 base,
(3) Special index based on a substantially smaller sample.
(4) Indexes on a December 1993=100 base.
(5) Indexes on a December 1997=100 base.
-Data not available.
NOTE: Index applies to a month as a whole, not to any specific date. Data hot seasonally adjusted.
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