Analysis: rollback millage would force $14.4M in cuts and reduce general fund revenue by $24M, committee told

City budget staff presented an analysis showing that adopting a rollback millage — the rate that would collect the same revenue as last year excluding new construction — would cut roughly $24 million from the general fund and a total of about $27 million across affected entities, and would require approximately $14.4 million in operational cuts.

Tamika (budget director) briefed the committee on the mechanics and potential impacts. She said the rollback millage would reduce the general operating millage from 6.1481 to 5.6354 and would reduce general fund revenue by roughly $24 million; that loss, plus related reductions to CRA and RDA transfers, would require city managers to identify $14.4 million in cuts and eliminate approved enhancements.

Staff emphasized how dependent the general fund is on property taxes and how much of the general-fund budget — roughly 60% — supports public safety (police and fire). Tamika said that without corrective action, “we would have had to go back in the budget after we've gotten the property values in July and look for $14,400,000 of cuts in our operations.” The committee used the presentation to frame the May budget retreat and to ask staff for further detail on revenue composition and on mitigation options.

Members and staff also flagged additional pressures: the recent amendment to homestead exemptions and a proposed county change that could shift a new 2% collection fee to municipalities — staff estimated that change could cost Miami Beach nearly $7 million across funds, hitting the general fund most heavily. Committee members directed staff to continue the analysis at the May budget retreat and to present options to avoid service-level cuts.