City Manager Charles Scurr says the fiscal forecast is positive for South Miami in the coming year.

In the city’s proposed budget for 1999-2000, which will be voted on by commissioners in September, Scurr says there are several important elements critical to keeping the city on a positive trend.

They include holding the line on taxes for the second straight year, finding creative sources of new revenue and continuing to reverse the trend of placing the biggest tax burden on homeowners.

"This past year witnessed changes and challenges unprecedented in the modern history of the city," Scurr said in his July 31 budget memo. "The opening of the Shops at Sunset Place and the creation of the Community Redevelopment Agency were milestone events."

Last year, the city faced what Scurr called a "challenge" of $2 million. More than $1 million of that went to necessary police resources and other department upgrades because of the opening of the Shops at Sunset Place. About $750,000 of it is considered a recurring expense and must be accounted for in this year’s budget as well.

Now that Sunset Place has undergone its first tax assessment, though, the city’s assessed value of new construction rose to $127 million, representing a dramatic rise over previous years. This represents a $695,000 increase in city revenue, putting South Miami in a much better financial light, Scurr said. This year, the city’s "challenge" has been whittled down to a mere $300,000.

The total ad valorem tax base increased by $178 million, a 32 percent increase also largely due largely to the addition of Sunset Place.

The Community Redevelopment Agency area also benefited from Sunset Place’s opening, as assessed property values rocketed to more than $132 million. New revenue to the CRA will amount to $437,160 from the city and $413,810 from the county, a total of $850,000.

"The financial ‘bottom line’ for this budget year is that the city will once again be called on to find creative solutions to meet our financial needs," Scurr said in the budget memo, "while holding the line on taxes and exploring possible ways to provide tax relief."

The city will hold its public budget workshop on Aug. 20. The first of two votes on the finalized budget will be held Sept. 3 with the final vote on Sept. 17.

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