There is no difference between the terms as they both refer to the tax on real property.
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The Adopted Budget is a financial document designed to provide residents, business community members and other stakeholders of the resources used to maintain and enhance current service levels in the City of Hollywood. The budget must be balanced, meaning that planned expenditures must equal anticipated revenues, and is annually adopted and approved by the City Commission resulting in the Adopted Budget.
Pursuant to Florida Statutes, the City of Hollywood must adopt and approve a balanced budget before October 1 of each year for the following year.
The FY 2024 Adopted Budget for all funds net of interfund transfers totals $779,369,869.
A fiscal year, abbreviated as “FY”, is the annual period applicable to the annual operating budget. Different governmental levels, i.e. federal, state, county and municipal, may have a different beginning date and ending date for their respective fiscal year. The City of Hollywood’s fiscal year runs from October 1 through September 30.
One mill is the equivalent of $1.00 of property taxes per $1,000 of taxable value. Taxable value is defined as the assessed value of property minus the amount of any applicable exemptions provide by the Florida Statutes or the Florida Constitution.
The City’s property tax rate for FY 2024 is 8.0846 mills which is a decrease of 0.0702 mills compared to the FY 2024 total millage rate. This is made up of an operating millage of 7.4665 and the voted debt service millage of 0.6181 mills.
The voted debt service millage is based upon the two General Obligation Bonds approved by a majority of the City’s residents in November 2004 and March 2020 and is used to cover associated debt service payments due in FY 2024. It should be noted that there are additional tax assessments imposed by other taxing authorities that will be included in your tax bill such as Broward County, the Broward County School Board, the South Broward Hospital District, and various other taxing authorities. All of these tax assessments comprise the total annual ad valorem taxes to be paid.
Debt is defined as an obligation resulting from the borrowing of money or from the purchase of goods and services. Debt instruments used by the City may include general obligation bonds, special obligation bonds, bond anticipation notes, and tax anticipation notes all of which must be approved by the City Commission before issuance. Additionally, a general obligation bond must be approved by a majority of the residents of the City qualified to vote and voting in an election; hence, the term “voted debt.”
Debt service encompasses the payment of principal and interest related to long-term borrowing and, for purposes of the annual budget, is calculated on an annual basis over the term or life of the debt.
As used in governmental accounting, a fund may be defined as a fiscal and accounting entity which is comprised of a self-balancing set of accounts which reflect all assets, liabilities, equity, revenue, and expenses necessary to disclose the financial position and the results of operations.
TThe City’s General Fund is the fiscal and accounting entity used to account for both general government activities and those activities not required to be accounted for in another fund. Included in governmental activities and operations funded by the General Fund are the Offices of the City Commission, City Manager, and City Attorney; departments such as Police and Fire; and most divisions within Parks, Recreation and Cultural Arts, Public Works and Development Services. The General Fund is the City’s largest fund with a FY 2024 total budget of $361,955,722 representing 46.4% of the FY 2024 Adopted All Funds Budget. Revenues which will fund the General Fund include net property taxes, utility service tax, simplified communications tax, franchise fees, local business tax, state shared revenues, fire rescue assessment fees, and user charges/fees.
An Enterprise Fund is a fund used to account for continuing operations which provide services to the general public that are similar to a private business enterprise in nature. The intent of an enterprise fund is to recover costs that will primarily be used to account for activities where the periodic determination of revenues and expenses is appropriate for capital maintenance, management control, or other public policy. Examples of enterprise funds in the City include the Water and Sewer Utility Fund, the Stormwater Utility Fund, the Golf Enterprise Fund, the Sanitation Enterprise Fund, and the Parking Enterprise Fund.
The Central Services Fund is used to allocate the cost of providing certain centralized services among user departments and offices throughout the City. Included in the activities or operations of the Central Services Fund are the operations of the City’s central garage or fleet maintenance, archiving and recordkeeping services, centralized public relations services as well as information technology services and technical support.
The Self Insurance Fund provides a central risk financing mechanism and self-insurance reserve for the payment of claims relating to workers’ compensation, general liability and employee health. Responsibility for the administration of the Self Insurance Fund rests with the Office of Human Resources that oversees matters involving employee related benefits such as life, health, and dental insurance coverage, as well as handling potential claims against the City. Activities of this fund include retaining of third party administrators, obtaining third party property insurance coverage, and securing claims management services.
The Capital Improvement Plan, “CIP”, is a compilation of the various proposed capital projects planned over a specified five-year planning period. The program also incorporates and specifies the resources estimated to be available for programming as well as the costs involved for each individual, proposed capital project. Given the fact that the CIP is a planning document, typically only the current fiscal year’s funding allocations are approved by the City Commission for expenditure.
A capital improvement project is defined as the major construction, expansion, purchase, or major repair or replacement of buildings, utility systems, streets, or other physical structures or property, which requires the expenditure of $10,000 or more and has an expected life or useful life of at least five years
The Adopted FY 2024 Operating Budget provides for 1,396 budgeted, full-time positions which represent an increase of 52 positions from the Adopted FY 2024 Operating Budget.