Research and Budget - Frequently Asked Questions
Frequently Asked Questions
Q. What is the purpose of the City budget?
A: The budget is an annual financial plan for the City of Fort Lauderdale. It specifies the level of municipal services to be provided in the coming year and the resources, including personnel positions, capital expenditures and operating expenses needed to provide those services. It reflects the policies and priorities set by the Mayor and City Commission.
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Q. How and when is the budget prepared and how can I get a copy?
A: Each spring, City departments submit their plans and needs for the coming year to the Office of Management and Budget, who implements the budget process and compiles the proposed budget. This is reviewed by the City Manager. The City Manager then submits the recommended budget to the City Commission. The Commission reviews the budget, holds two public hearings to obtain citizen input and make changes. Finally, the Commission adopts the approved budget along with an ordinance establishing the property tax rate required to fund the budget. A copy of the adopted budget is available for viewing on-line http://www.fortlauderdale.gov/documents/budget.htm, at all Broward County Libraries (Broward County) and in the Budget Office in City Hall.
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Q. When and where were the public hearings for the Fiscal Year 2005/06 Budget?
A: Meetings were held in City Hall at 100 North Andrews Avenue on Wednesday, September 7, 2005 at 6:00 p.m. and on Wednesday, September 28, 2005.
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Q. When and where were the public meetings for the Fiscal Year 2005/06 Budget?
A: Meetings were held on Wednesday, September 7, 2005 in City Hall at 6:00 p.m. and on Wednesday, September 28, 2005 in City Hall at 6:00 p.m.
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Q. Who establishes the rules by which the City of Fort Lauderdale adopts its annual budget and property tax rate?
A: The property tax rate and budget adoption process are governed by both the City Charter and State Statutes.
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Q. What is the property tax rate?
A. When the City adopts its annual budget, it determines the tax rate that must be applied on property in order to generate the necessary revenue in addition to all other sources, which are available. The approved tax rate for the City of Fort Lauderdale is 5.4313 mills or $5.4313 per $1,000 of taxable value. The taxable value of all property in the City is established by the Broward County Property Appraiser. The City has no control over the taxable value of property; it only has control over the tax rate that is levied.
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Q. What is a TRIM notice?
A. TRIM is an acronym for the Truth In Millage Law, passed in 1980 by the Florida State Legislature. It was designed to keep the public informed about the taxes as proposed by local taxing authorities. The TRIM notice is the Notice of Proposed Property Taxes required by this law. All property owners should receive a TRIM notice each August.
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Q. What is the Sales Tax Rate in Fort Lauderdale?
A. 6%
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Q. The total property tax rate for 2006 on property in the City of Fort Lauderdale was 20.7251 mills (thousands). How much of that is paid to the City?
A. Only 5.4313 mills of the 20.7251 mills levied in fiscal year 2006 are paid to the City. This represents only 26% of the total property tax bill. Other taxing agencies in Broward County include the County Services, Broward County School Board, the South Florida Water Management District, Children's Services, and Florida Inland Navigation District.
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Q. How do I compute my property tax?
A. Determine the taxable value of the property:
Assessed Value = $100,000
Homestead Exemption = $25,000
Taxable Value = $75,000
Divide this by 1,000 and multiply by the millage rate:
(75,000/1,000) x 20.7251 = $1,554.38
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Q. When do I receive my tax bill and when is the payment due?
A. Tax bills are mailed by November 1 and payment is due on or before March 31 of the following calendar year. Discounts are available for early payment. For more information on making property tax payments, please contract the Revenue Collection Division of Broward County at 954-765-4697.
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Q. What is the Homestead Exemption?
A. The Florida Constitution provides that a homeowner may apply for and receive a Homestead Exemption in the amount of $25,000 on his or her principal residence. All property is appraised by the Broward County Property Appraiser. $25,000 is subtracted from the appraised value, leaving what is known as taxable value. The taxable value is that amount upon which the property tax rate is applied.
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Q. What is the difference between ad valorem tax and property tax?
A. There is no difference. They are different names for the same tax.
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Q. What is an Operating Budget?
A. An operating budget is an annual financial plan for recurring expenditures, such as salaries, utilities, supplies, insurance and equipment repairs.
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Q. What is a Capital Improvement Plan Budget?
A. A Capital Improvement Plan Budget is a financial plan for the construction of physical assets, such as buildings, streets, sewers, and vehicles and equipment.
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Q. What is a fund?
A. A fund is a separate accounting entity within the City that receives revenues from a specific source and expends them on a specific activity or activities.
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Q. What is an Enterprise Fund?
A. An enterprise fund earns its own revenues by charging customers for services that it provides. It receives no tax funds. The City of Fort Lauderdale operates its Sanitation, Water and Sewer, Central Regional Wastewater, Storm water, Central Services, Parking, and Airport as enterprise funds.
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Q. What is an Internal Service Fund?
A. An internal service fund earns its own revenues by charging other City departments for services that it provides to them. Examples of internal service funds within the City of Fort Lauderdale are the Central Services Fund, Fleet and Vehicle Maintenance Funds, and Insurance Funds.
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Q. What is a fiscal year?
A. A fiscal year is a 12-month operating cycle that comprises a budget and financial reporting period. The City's fiscal year, along with other local governments and special districts within the State of Florida, begins on October 1 and ends on September 30.
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Q. What is a budget appropriation?
A. A budget appropriation is a specific amount of money that has been approved by the City Commission for use in a particular manner.
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Q. What is a budget amendment?
A. A budget amendment is a change approved by the City Commission which alters the adopted budget by appropriating additional monies to a particular department, decreasing appropriations to a particular department, or transferring funds from one department or fund to another.
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Q. Where does the City obtain its revenues?
A. All monies are ultimately derived from citizens in the form of local, state and federal taxes; fees, fines and licenses; and payments for municipal services such as recreation fees, parking meter collections and utilities services (water, sewer, garbage collection, and storm water fees). The Revenue Manual  is available online.
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Q. What are utility taxes and franchise fees, and why does the City of Fort Lauderdale levy them?
A. A utility tax is a tax levied on utility bills, to be paid by the utility purchaser. It is similar to a sales tax, except it only applies to utility bills and not to any other purchases. The City levies a 10% utility tax on electric, gas, and utility water bills for customers within the City. A State of Florida Communications services tax represents 49% and Florida Power and Light (FPL) comprises 40% of the revenue received.
The franchise fee is a charge levied by the City on FPL and Peoples Gas to operate within the City and to use the City rights-of-way and other properties for locating pipes, wire, etc. The state allows utilities to pass on the franchise fee directly to customers on their bills. FPL remits 6% of its gross revenue derived from accounts within the City limits.
The City of Fort Lauderdale, like most cities in Florida, relies very heavily on utility taxes and franchise fees for revenues rather than on the property tax, which is usually much lower than property taxes levied in other states.
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