Economic Financial Overview
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Economic and Financial Overview
Copies of the Comprehensive Annual Financial Report for the Fiscal Year ended
September 30, 2000 and the Adopted Budget for the Fiscal Year 2001-2002 are
provided to you for your review as part of this package.
Attached are several items that might be helpful in providing you with an economic
and financial overview of the City, including:
A copy of the City Manager's message presented to the Mayor and Commission on
July 25 which gives a financial and budget enhancement summary for the 2001-2002
Fiscal Year.
A calendar and work plan for the Fiscal Year 2002-2003 Budget Development
Process which provides specific dates and outcomes regarding the budget process.
A copy of the PowerPoint presentation made to the financial rating agencies in New
York City in August 2001.
r Also provided to you as part of this package is the City of Miami Beach's 2000 Market
Study which provides useful and valuable information about Miami Beach. The 2001
edition will be available in early December and will be provided to you as well.
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CITY OF MIAMI BEACH
I'"'
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
OFFICE OF THE CITY MANAGER
TELEPHONE: (305) 873-7010
FAX: (305) 673-7782
July 25, 2001
Honorable Mayor Neisen O. Kasdin and Members of the City Commission:
The City of Miami Beach has made great strides to become a truly world class,
cosmopolitan, vibrant, historic community whose residents are as diverse as its visitors.
Although our island city of just 7.1 square miles has changed dramatically in the past few
years and has dealt with a number of challenges, we enter the future in a solid economic
position. The City of Miami Beach is in excellent financial condition as is evidenced by the
proposed budget, which is balanced without the need to raise the millage rate, maintains
current service levels, provides for enhanced service levels, and includes a projected
r General Fund total fund balance of $27.6 million and an 11% contingency reserve for
emergencies. All of this has been accomplished while maintaining an operating millage
that is less than the millage of half of the municipalities in Miami-Dade County.
The past year represents my first full year as your City Manager. During the year, we have
had many conversations and deliberations concerning the direction that you would like to
see the City head, along with the various visions each of you have for the future. Together,
we have worked to combine these ideas, which are representative of the various
constituencies within the City, into a cohesive plan.
Among the issues that we have identified for our future, through our five-year Visioning
effort, are the following:
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. Implementation of the Capital Improvement Program to improve the City's
infrastructure, public facilities, parks, beaches, golf courses and public safety
equipment that was funded through the three major bond issues;
. Implementation of the recommendations of the Business Resolution Task Force that
would expedite the permitting process, improve customer service, simplify Land Use
Boards Process, improve staffing and hiring, and invest in technology;
. Creation of a cohesive Strategic Plan and Economic Development Program that
manages and fosters the economic growth in the City; directed at expanding and
diversifying the economic base without adversely impacting the unique character of our
community and our residential neighborhoods;
. Investment in the organizational development and internal staff capacity to ensure that
the City's workforce is prepared to lead, serve, and address the City's unique
challenges.
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All of this is aimed at creating an organization that is focused on the goals of the
community - an organization that is proactive in anticipating challenges and can develop
creative policy alternatives, that is nimble enough to quickly capitalize on opportunities as
they may arise, and that is engaged in continuous improvement and learning. Given this
focus, we believe that within five years, the City of Miami Beach will be cleaner and safer;
more beautiful and vibrant; mature and stable with a well-improved infrastructure; a unique
historic, urban environment; a cultural, entertainment, and tourism capital; and an
international center for innovation in culture, recreation and business.
This five-year Vision is based on our collective observations, interactions with the Mayor
and Commission, City employees, and community groups and individuals. As you are
aware, we have already begun our journey during the past year, and the staff and I have
continued this Vision through the proposed FY 2002 Budget. As alluded to, I have made
several course changes during FY 2001, many of which will appear in the FY 2002 Budget.
During the year, we have streamlined the City Administration by grouping similar
departments together through a realignment of reporting relationships. This effort was
designed to facilitate teamwork within the organization in a manner that has expedited our
ability to address community needs around the following three basic areas: (1) Economic
Development, Tourism and Cultural Development; (2) Operations and Services; and (3)
Internal Support Services.
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The first area, Economic Development, Tourism, and Cultural Development, is designed to
work with the community in a manner that fosters economic and commercial development
while preserving residential interests. The second area, Operations and Services, focuses
on our neighborhoods, maintenance and infrastructure operations and services in a
manner that is customer service oriented and responsive to neighborhood expectations.
The third area, Internal Support Services, places a focus on our internal services and
infrastructure delivery systems that are critical in order for us to meet the community's
expectations.
We have created the Capital Improvement Projects Office designed to consolidate the
City's capital construction efforts into a single entity and to provide the platform to
comprehensively address the ambitious goals set forth in the General Obligation Bond
program, the Water and Wastewater Bond program, and the Stormwater Bond program.
For the first time, the City has the administrative tools in place to address this ambitious
program in a professional and organized fashion deserving of our residents and
neighborhoods. The progress made in this area in the closing quarters of FY 2001 will
generate momentum that will be continued into the next year.
The Business Resolution Task Force (BRTF), a group representative of the City's business
leaders, has made considerable strides in improving our relationship with this community.
This group's initial focus on our various citywide processes affecting the business sector
has resulted in significant improvements to our technological backbone and our ~
streamlined efforts to provide more efficient services. Examples of our progress include
the recommended relocations of the City's Planning, Building, and Concurrency
Departments to City Hall's second floor and related build-out of the 555 17th Street facility
should be complete and provide an enhanced, one-stop permitting process by the end of
the 2001 calendar year. Progress has been made in identifying specific recruiting
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strategies for hard-to-fill positions that affect the City's business related regulatory
functions. Finally, we have initiated a customer service focus for our Building, Code
Compliance, and Planning employees. A spin-off of this BRTF effort is the implementation
of our Citywide customer service initiative.
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As part of the City's Economic Development efforts, comprehensive, strategic initiatives are
being developed and implemented for North Beach and the Middle Beach commercial
district. In South Beach, the Ci~ has initiated a site analysis and development concept
plan for the Washington and 17th Street properties which will result in an updated plan for
the City Center / Convention Center district. The realignment of functions within the
Cultural Affairs and Tourism Development Department will provide focused leadership to
promote the cultural, arts and entertainment industries. These concentrated efforts will
continue to attract significant private investment in the community, revitalize our residential
neighborhoods and firmly plant Miami Beach as a premier tourist and visitor destination.
Among the accomplishments in the area of Organizational Development, are the
recruitment of several key senior level positions, the hiring of Arthur J. Gallagher & Co. as
the City's Broker of Record for Health Insurance Services, the establishment of a Group
Health Insurance Task Force, several Customer Service Initiatives, the inclusion of funds to
address the issue of salary compression and benefits among our employees, particularly at
the management levels, and an enhanced Budget Process. This area, which involves our
human resources, often requires longer time horizons to achieve stated milestones. A
great deal of effort has been spent in developing the groundwork for organizational change
moving into the next few years. The FY 2002 Budget maintains a focus on our internal
processes and internal resources.
To ensure that our priorities for the next five years are accomplished, the budget that is
proposed continues the comprehensive effort that we have been working on this past year.
Financial Summary
The General Fund is the primary source of funding for City services. General Fund
revenues are derived from ad valorem property taxes, franchise and utility taxes, business
license and permit fees, revenue sharing from various statewide taxes, user fees for
services, fines, rents and concession fees and interest income. Additionally, Resort Taxes
provide funding for tourist related functions that are classified within the General Fund.
The proposed FY 2002 General Fund budget is $152.0 million, which is a 10.7% increase,
or $14.7 million more than FY 2001 adopted budget of $137.3 million.
General Fund Revenues
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The largest increase in budgeted
revenues for FY 2002 is from ad
valorem property tax, which includes a
levy for the general operations of the
City as well as a levy for the debt
service on outstanding general
obligation bonds. The Administration is
Pi alO2l'nlpaB1 GIlnlII1lI FIn! ArMnIIllI
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recommending the City's operating millage rate at the current rate of 7.399, and has
calculated a decrease of 0.079 in the current debt service millage rate of 1.156 to 1.077.
Although the overall millage will decrease (0.079), due to increases in assessed value
there will be a net increase in the amount of taxes that the average residential homeowner
will pay to the City in the coming fiscal year.
The City received the "2001
Certification of Taxable Value" from
the Miami-Dade County Property
Appraiser's Office on June 29,
2001, stating that the taxable value
for the City of Miami' Beach had
increased to $9.4 billion, which
included, $338.2 million in new
construction. The preliminary 2001
value represents an increase of
14.6 percent over 2000's final value
of $8.2 billion and represents the second largest increase the City has experienced in its
recent history.
Property Tax Rates
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90
80
70
60
50
40
31>
21>
11>
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93 94 9$ 96 97 98 99
'00 '01 '02
_Tax Lev,
....Prop.rty V.IUlIIS
10
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3
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2 ;:
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Prooertv Values and Ad Valorem
Taxes
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Alternately, the increase is 12.3 percent over 2000's preliminary value of $8.4 billion. The
difference of $168.7 million between 2000's preliminary and final values represents the
equalization loss of less than 2.1
percent due to appeals, etc.
The proposed millage rate of 7.399
mills for general City operations will
generate ad valorem tax revenues of
$67.1 (of which $12 million will be
transferred to the Redevelopment
Agencies) for a net revenue total of
$55.1 million in the General Fund. The
total amount is $7.4 million more than the prior year levy of $59.7 million, reflecting a 12.3
% increase. The net General Fund ad valorem budget has increased $5.4 million (10.8%)
from $49.7 million to $55.1 million.
The comparative assessed values for
the Miami Beach Redevelopment
Agency South Pointe redevelopment
district increased by $107.6 million or
14.7 percent from $733.1 million to
$840.7 million. City Center
redevelopment district assessed values
increased by $18 million or 17.3 percent
from $1.04 billion to $1.22 billion.
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~ 8.0
..
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g 7.0
5
...
..
Z. 6.0
...
Gn:ral QJer.iirg Tax Rates
10.0
9.0
5.0
" M ~ H ~ " " ~ ~ ~
FIsaoI Years
-.,
.Adopted Rate . Proposed Rate - Ron Back Rate
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General Obligation Debt Service t4IIage
3.0
:1.0
'.0
0,0
" M " 96 97 " h W m ~
fllcal V.....
III MIIIIIII. Ram . R........ Suppl.m.nt
The general obligation bond debt
service payment for FY 2002 is $ 9.77
million, an increase of $0.4 million or
4.6% over FY 2001. This increase is
due to the issuance of the first $30
million of the $92.465 million bond
approved by referendum in November
1999. These bonds require the levy of
a debt service millage of 1.077 mills.
However, as a result of the significant
and continued increases in assessed
values this levy is 0.079 mills, or six
and eight tenths percent (6.8%) less
than the FY 2000101 rate of 1.156 mills.
Other General Fund Revenues
In the category of Other Taxes, franchise and utility taxes are projected to increase
approximately $800 Thousand from electricity, gas and cable fees. The General Fund will
r reduce its waste collection franchise fee by an additional 2%, which will be moved to the
Sanitation Fund leaving 4% in the General Fund and 8% in the Sanitation Fund.
In the area of License and Permit revenues, permit revenues are projected to increase by
approximately $1.2 million based on increases in the areas of building and trade permits as
a result of continued strength in construction activity.
Intergovernmental revenues are expected to increase approximately $.6 million from sales
tax, and local option gas tax. The City will also receive a minimum increase of $1.5 million
in Convention Development tax revenues as a result of the amendment to the 1996
Interlocal agreement with Miami-Dade County that was completed during FY 2001.
Approximately $0.25 million of such funds will be used in the General Fund to provide the
City match for the Miami Beach Botanical Garden that will be operated through a
management agreement with the Miami Beach Garden Conservancy.
In the category of Fines and Forfeit revenues, we project a modest increase of $0.3 million
resulting from traffic citations, building code and code compliance violations. Interest
income is expected to decrease by approximately $0.1 million as a result of lower interest
rates on investments.
Rental income, generated form Historic City Hall, Penrod's Pier Park Restaurant, Smith
and Wollensky's and other City owned properties, is projected to increase by approximately
$0.1 million.
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In the area of Miscellaneous revenues, an increase of approximately $0.5 million is
projected from the cable TV franchise fee settlement and for reimbursement from capital
funds to pay for project management otherwise paid for by the General Fund.
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General Fund Exoenditures
Current service level improvements in
the FY 2002 General Fund Budget total
approximately $8.4 million and
enhancements total approximately $3.6
million. Major current service level
increases are described below by
functional area. Then include increases
in the following functional areas.
FY 2002 Budget Proposed
General Fund Expenditures
Public Safety
Public Safety salaries will increase by
$1.5 Million from merit and COLA
increases as a result of contract
negotiations. As an additional contract benefit, the proposed budget provides $725
thousand of funding for the cost of a stipend for each police officer and firefighter for
maintaining specified certifications at the Department level. In FY 2002 the City's
contribution to the Police and Fire Pension will increase by $3.2 Million and the contribution
to the Police and Fire Health Trusts for health insurance will increase at least $500
thousand. Overtime and other operating costs are projected to decrease by $425
thousand. .
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Ooerations
In the Operations function, salaries are estimated to increase by $1.1 million for merit and
COLA increases and health Insurance costs will increase an additional $200 thousand.
An additional $500 thousand has been provided for purchases of tools and equipment
through the renewal and replacement fund.
Economic Develooment and Cultural Arts
In the Economic Development and Cultural Arts function funding of $655 thousand is
included to provide for merit and COLA increases and the increased cost of health
insurance.
Administrative Suooort Services
In the area of Administrative Support Services funding of $460 thousand is included for
increases for merit and COLA increases and the increased cost of health insurance.
Additionally, $110 thousand has been provided to cover the cost of the November 2001
election.
Internal Suooort Services
Funding for the Internal Support Services functions includes $600 thousand for merit and
COLA increases. Health Insurance funding has increased by $ 670 thousand to provide for
increased health insurance costs for both active and retired employees. Additionally, --
funding has been provided to cover an expected $700 thousand increase in property
insurance. An increase of $700,000 has been provided for debt service related to
equipment purchases with a similar decrease in the City's contribution to the fleet renewal
and replacement reserve. Funding for increased fuel costs of $300,000 has also been
provided.
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Budaet Enhancements
Public Safety
This functional area includes the Fire and Police Departments. For Public Safety program
enhancements, I am recommending a total of $431,000.
In the Fire Department, I recommend additional funding that will address internal capacity
needs. I am supporting the reclassification of an existing Division Chief to Assistant Chief
to provide a clearer management structure for the department. To address peak call
volume, I recommend the staffing of a North Beach Peak Response ALS Rescue unit
through overtime. I have also recommended funding for Strategic Planning and a
consistent uniform to improve department morale and image.
In the Police Department, I am recommending several enhancements that address intemal
capacity improvements. The enhancements are designed to improve the overall function
of the department through the addition of managerial and internal service support.
Highlights of my recommendations for the department include the addition of an Assistant
Chief to clarify the management structure, which is partially offset by the deletion of an
officer position; and the creation of four Public Safety Specialists to assist in the traffic
control required by the City's capital construction efforts. The four Public Safety Specialist
positions are proposed to be funded through the respective capital project budgets.
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Operations
This functional area includes the Capital Improvements Program Office, Public Works
Department, Neighborhood Services Department, Parking Department, and the Parks and
Recreation Department. For program enhancements in this area, I am recommending a
total of $1.8 million.
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Although created in the current year, the Capital Improvement Projects Office will be fully
operational in FY 2002. The Office is tasked with the overall coordination and direction of
the City's capital construction efforts, consolidating the City's former independent project
management functions. The Office generally separates the former Construction
Management Division of the Public Works Department into a stand-alone department. The
incremental additions of a director, project planning, community information, and support
functions represent an overall increase of $567,718. funded primarily through the various
bond issues that support the current capital program.
As part of the streamlining of the Administration, I have consolidated a number of our
resident services into a new Department of Neighborhood Services. The incremental cost
of this re-alignment is $146,388 for the general administrative costs associated with the
Department's formation. The Department includes Code Compliance, Community
DevelopmentlCDBG, Housing, Homeless Coordination, Elder Affairs, Children's Affairs,
Civicall, Community Resources & Outreach, and Media Relations. For the Code
Compliance Division, I recommend adding resources to further enhance our movement
toward a friendlier, cleaner, and pleasant image. A major cornerstone of our future
success is the ability to positively communicate with our residents. In order to better
address this issue, I recommend funding $200,000 for an Annual Report and
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improvements to the City's newsletter. This recommendation provides for a full color, two-
page bilingual newsletter mailed directly to our residents every other month. In addition, an
Annual Report would be created and mailed as the sixth issue.
In Parks and Recreation, I am recommending $591,051 in additional funding to primarily
address the expansion of services that correspond with the capital improvements begun in
the last two years. Additional staffing is needed for the new ice rink at Scott Rakow, for the
new pool at Flamingo Park, and for an additional lifeguard at 5th Street. Funding is also
recommended to support increased landscape maintenance costs and replacement of
furniture and equipment at renovated parks.
To improve our ability to respond appropriately to community and neighborhood issues, I
recommend several improvements to the Public Works Department that will enhance our
capacity to address neighborhood appearance issues. Among the recommendations are
the additions of positions to service the City's fountains, staff a Mechanized Sweeping
program, and provide a higher level of Sanitation Code Compliance.
Economic Develooment and the Arts
This functional area includes the Building Department, Planning Department, Economic
Development, the Bass Museum, and the Cultural Affairs and Tourism Development
Department. For program enhancements in this area, I am recommending a total of ~.
$240,000.
These enhancements include funding the position of the Cultural Affairs and Tourism
Development Department Director who will provide focused leadership among the various
City and community based organizations that promote culture and tourism in our region
and funding the increased costs associated with the reopening of the Bass Museum.
Administrative Suooort Services
This functional area includes the Office of the City Clerk, the Office of the City Manager,
Finance Department, Office of Management and Budget, Information Technology, Intemal
Audit, and Procurement. For program enhancements in this area, I am recommending a
total of $1,419,230.
These enhancements include the funding of important positions in the Finance
Department, Office of Management and Budget, Information Technology, the City Clerk's
Office and Human Resources. In addition, I am recommending that $1,017,230 be
allocated to the Information Technology area to improve the critical services they are
providing to the City.
City Wide Services
For the Miami Beach Botanical Garden, I recommend $255,370 in funding to support the
overall operations ot'the Botanical Garden in the coming year.
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City Attornev
For the Office of the City Attorney, I recommend the addition of a First Assistant City
Attorney who is a specialist in construction related legal issues. This specialist position will
minimize outside counsel fees due to the G.O. Bond, Water & Sewer Bond, and
Stormwater Bond financed projects that may produce construction litigation.
Budaet Recommendation
The Administration recommends that the Mayor and City Commission adopt the attached
resolution, which authorizes the City Manager to transmit the following information to the
Miami-Dade County Property Appraiser:
1) Proposed Millage Rates for FY 2001/02:
General Operating 7.399 mills (7.399 last year)
Debt Service 1.077 mills (1.156 last year)
8.476 mills (8.555 last year)
2) Rolled-Back Rate (Truth in Millage)
6.695 mills
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3) The first public hearing to consider the proposed millage rates
and tentative budgets for FY 2001/02 shall be at 5:01 p.m.,
Wednesday, September 5, 2001 in the City Commission
Chambers, City Hall, 1700 Convention Center Drive, Miami
Beach, Florida.
ACknowledoements
The development of the City of Miami Beach's proposed budget has taken an incredible
amount of time, dedication and skill. The City is fortunate to have a talented, committed
staff who compiled a budget that is fiscally balanced. To all of the City personnel who
worked so diligently on this budget, I want to thank you. In particular, I would like to thank
the Assistant City Manager's and all the Department and Division Directors for submitting
realistic budget requests, and to Patricia Walker, Chief Financial Officer, Georgina Echert
and the Finance Department staff, and Jose Cruz, Carmen Carlson, William Gonzalez,
Joseph Reilly, and Sailyn Arce from the Office of Management and Budget (OMB) for their
excellent budget skills, perseverance, long hours and patience spent in preparing this
budget. I would also like to thank Mayor Kasdin and the Members of the City Commission
for their leadership and direction in continuing to develop our organizational structure and
in helping to accomplish so much that has benefited the City of Miami Beach.
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Respectfully,
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56'rge M. Gonzalez
City Manager
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OFFICE OF MANAGEMENT AND BUDGET (OM B) WORK PLAN
FY 2002/03 BUDGET DEVELOPMENT PROCESS
DATE . ... . : .'i :. ACTIVITY . . .:.....
October 30th Bud~~t planning workshop and distribution of budget development packets
to de artments.
Month of November/December Deg~~mental Board/Committee Liaisons schedule FY 2002/03 Proposed
Bud et for discussion at meetina to solicit Driorities.
Week of November 5th Department Directors confer with Assistant City Managers during budget
development for approvals; ensure input received from Boards/Committees
is addressed in their budget submission due on DECEMBER 27.
December 27th Last day to submit budget proposals for FY 2002103 to the Office of
Management and Budget (OMB) with Assistant City Manaaer's approval.
,Jan 14th - Feb 22nd Departmental reviews with OMB and Chief Financial Officer (CFO);
recommends funding level.
Mar 4th - April 30th City Manager schedules reviews with Department Directors, OMB. and
CFO to review budget submissions.
Week of May 13th OMB advises Department Directors of proposed funding levels.
May City Commission Briefings; obtain input on preliminary General Fund
Budaet.
June Budget Advisory Committee (BAC) hosts Public Forum; invite Audit
Committee, boards/committees, community groups; review preliminary
fundina levels.
June City Commission Workshop; obtain input on preliminary funding
levels.
July 1st City receives "2002 Certification ofTaxable Value," FORM DR-420 from the
County Property Appraiser. City Manager sets final adjustments to
Proposed Budaet document.
Week of July 15th Proposed Budaet to Print Shop.
Week of July 22nd Proposed Budget forwarded to the Mayor and Members of the City
Commission.
July 31st City Commission meets to set tentative property millage rates.
August 2nd Proposed property millage, FORM DR-420. sent to County Property
Appraiser and Tax collector by 5:00 p.m.
BY OR BEFORE August 24th County Property Appraiser's Office mails notice of proposed property tax
rates to propertv owners.
Month of September First and second public hearings; tentative and final millage rates and
operatina budgets adopted.
WITHIN 15 DAYS OF FIRST Advertise tentative budget and millage, and date for second public hearing
PUBLIC HEARING in Neinhbors/Herald.
WITHIN 3 DAYS FOLLOWING Second public hearing held to adopt final millage and budget.
ADVERTISEMENT
WITHIN 3 DAYS FOLLOWING Final adopted millage to County Property Appraiser and Tax Collector by
SECOND PUBLIC HEARING 5:00 p.m.
WITHIN 30 DAYS FOLLOWING City submits "Certificate of Compliance," FORM DR-487 to Florida
SECOND PUBLIC HEARING Department of Revenue in Tallahassee.
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The City of Miami Beach
Fiscal Update
August 2001
. Residential Re~I!~te
fverage condomi~iurTl Sale Price
$400,000
$350,000
S3OO,OOO
$250,000
$200,000
$150,000
$too,OOO
S5D,OOO
s-
1997
2000
2001y-t-d
"98
1999
....."'fS.ad1
CI.!i...,I-o.deCountv
An
Economic
Overview
~ Miami Beach _~~~i~~ntial Real Estate
. The median single family home price of units
sold is $733,736 compared to $513,904 two years
ago.
. Currently, the median price of new condominium
units sold is $377,354 compared to $259,007 last
year.
uw,.JrMI\'y--.......~"""*'-
Our New Neighbors
_ Apartments/Con~~miniums
Promet ~ l!IIiSI.. Com.......... data
Murano Gr.nde ~ '_II I 115 mlllan 320
Grand f"mIngo .7.5 ..mlon 1,112
Ocun Place Welt 12..5mWlon 53
lofta_Southkach 25mmlan 26
The Continuum. P.....l 72 million (r-S) 303
The Murano 50 m111k>>n 119
The s.tIey Bay 25 mllion 160
BIIth ChIb 12.5 million 256
The Wnerly 35 millIon 400
Whtte Diamond 54 million 4151
Grand VlWletlan 31 million 134
Mirador 25 million 1,440
11103
SprInf 2002
-"1110'
Spring 2002
,aI' 2002-
Spring20ClI
o.c.mber 2002
Jan_ry 2003
SUmmer 2001
2003
DeclImber 2001
SUmmer 2002
1
Residential Building Permit Activity
2000
Z800
2700
'E 2.00
~ :Z500
"
Q.
2400
2300
2200
2100
1..7 1". 19"
, Business
2000 YTD thru
7/01
~.. Employment
Economic ImpllCt of 5eIected Miaml Beach lndustries
Direct &:Cfttlmnlc Imnad
107,461,&91
517,832,G44
442,212,187
393,5Ge,H2
333,570,837
251,GaS,700
Indldtrv
R_ilTr-u
Food.nd a.v.r~
_.
Helpft.ll
Ena.rtlilnmtlnt l'nch..ry
D_I.".._
Tfttallobs
11,650 '
2O,>tO
12,428
5,242
2,405
3,850
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:iResidential Building Permit Activity
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-
f- '-
.- -""'" f- -
- f- c-
.- - - f- '-
- - - - -
Million_
$'50
$300
$250
$200
$150
$100
$50
$0
1..8
199'
un.7
2000 YTD thru
7/01
~aior ~~~!~~
Ctlyof......... ..,so
-
~...... 1,200
La_ Mill""..... HohI lOG
eM. RaIl R-.f: MIl IiINl 470
......d OIItpnt .120
RadkMn o..wIt.. 270
-....
Mount "II/ Hf.....I...rt ""..... S,544
SDuttlSh_HlMIpitI!I 150
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EltlthInlfl........ 1"
'"n, MII*I.......... 170
MTV......AMeric. 11.
CU".. T...... Group 103
--
...11x ......-rUb 110
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ry.commercial Re~~Estate
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~South Beach Offic.e... p....ro.iects
I.. .(2000-2002)
PROJI!C1' SQ.rr. COMPLETION DATE
55S W..hlngton Avenue 45,100 IM.w CoMtructton/Sprlng 2001
Lincoln Place 110,000 fHw eon.ttuct:iDII/fall 2001
'M Uncoln U',sI2 New CoMtructiDn/1D02
Unt:oln ReNd Millennklm 23,000 New ConItructianJSprIDg 1001
At"ntk:CItntltr 30,000 New ConttructiDn'F-'llOO1
5th and Mlchiglln 38,000 NllW,eon.tructJon/Elirtr 2002
Towe:rgate 38,:ZOO New Construction/ElI"" *2
Mlctlipn 0 11th It. 82,154 RenoVAtion/December 2000
420 LIncoln Road 190,000 Renovation/December 1000
1180 ~rkRM 52,500 Reftavation'Fall200t
UncoIn Center 34,711 RtInovation/Early 2002
~;our New Nelghbo~~U~~~r Construction
ProW:l: Cost BmmIL Comnletion Date
r
Setal AmanResorts $125 mlAIon
Ritz carlton $100 m.11on
Royal Palm Crowne Plaza $ 64 million
Bentley Beach $ 40 million
Sagamore $ 20 million
carlyle $ 8 mlAlan
Marriott Courtyard $ 8 m'lIon
Edgewatel' Hotel $ 4.5 mllion
90
380
424
98
200
40
86
90
faA 2002
2001/2
2001/2
Summer 2002.
Fall 2001
Spring 2002
Spring 2002
2003/4
~mmerdal Buil~lng p:rmit Activity
Million.
$<i.
$'.
....,
,..
$20
$1.
,.
199.
2000 YTD ltiru
1/01
1997
1998
r
'ur New Neighbors~Re,=~!1y Completed
Proiect:
Cost
Number Dr Roaml
Shore Oub
Marriott SOuth Beach
Roney Palace
Townhouse
Nash Hotel
W1nterhaven Hotel
Abbey Hotel
Whitelaw Hotel
$125 million
$ 38 million
$ 25 mlAlon
$ 10 million
$ 9 million
$ 7 million
$ 2.5mllion
$ 2 million
325
236
550
71
40
71
50
49
tur New Nelgh~rs~~I~nned Projects
Proiect ~ 8lIRm1 eam_ Dote
carillon $9S mlllon 755 2003/4
fontainebleau Hilton $40 milion 1,442 2003/4
MIrabel $10 mnion 111 Winter 2002,13
South Beach Oty COnter $75 mllnon 138 2003
VieW $45 mlAIon 90 2003/4
Oliver $25 million 100 Winter 2002
'* Retail
3
~' Retail
. 1,512 Businesses atywide
. 93.7% Retail Occupancy
. 64 New Retail Stores Opened in 2001
. 29 New Restaurants Opened in 2001
. 2000 Retail Sales: $1.03 Billion '-.""-l
. 1998 Retail Sales: $907 Million '~';"""-l
~ Lincoln Road~~.~~.~ian Mall
. Rent Structure: $55 to $75 per sq. ft.
. Food and Beverage Sales have risen 127%
since 1996.
. Food and Beverage activity has attracted new
upscale retail during the last two years.
MAY 0 R S'
WILUAMS.SONO~l"A
SWOtchll
~_!lOo
bebe'
\'lCf()iZ!A':;.. :-;!-;C"iit-I
.
BANANA R.EPUBl.1C
~:EconomiC Impa~~I'IMlami Beach
2000 OponIling IIudget T.....
_Ion/print
Film
Music
New Ned..
Pnld_
TV/Cable
Events and Tl"Bde Shows
Location Adivlty
$34,500,000
$11,250,000
~.soo,ooo
$64,350,000
$27,450,000
$56,400,000
$17,623,687
$61,497,150
ENTERTAINMENT INDUSTRY TDTAL I
$ 333,570,837
~
t Collins Avenue Fashion District
. Rent Structure: $40 to $100 per sq. ft.
. Average Sales per sq. ft.: $763
. Some retailers report average sales up to
$1,600 per sq. ft.
-
II
R~NANA REPUBLK:
mt~'!l~]
, ~~~~?.~!'::'
~ t:J WllKl'ROQRIGI.Hl
~ Entertainme-"-!}~~~ustry
--.,
~
Entertainment Industry
Job Growth
3.000
,2.500
..
~ 2.000
~
o
j
E
i
1.500
1.000
500
~I n n ,~ u 96 91 n tt Uto
_Total Jobs Start-up Jobs
~
4
r
~! Health Services
~ Cultural Arts
r
conomlc Impact of Non-Profit
ulture and Performing Arts
Revenues -
Total Economic Output -
Total Earnings Generated -
$39,210,678
$95,297,460
$27,623,048
r
~tlealth Serv~c~~~
. Merger of Mount Sinai and Miami Heart Institute
. Largest Single employer in the City 01 MIami Beach
. Revenues.
. Total Economic Output.
. Total Earnings Generated -
. Total Employees .
$349,918,175
$771 ,273,685
$247,909,399
4,394
~Art Basel comes to Miami Beach!
"Art Basel, organizer of the tone-settlng
modem and contemporary art fair, is
expanding into the U.S. with the planned
opening of the art fair In Florida next
year ...the U.S. fair will run under the name
Art Basel Miami Beach."
n..w.llltrMtllMlrMl e....... ..JIJMiD--M., JCIOO
5
trt Basel comes to Miami Beach!
. e will visit Art Basel Mlaml;;;~h~lth a group of
collectors from the Guggenheim's International
Directors Council as well as with the Association of
Swiss Private Collectors."
Ufl8 Dreyfus: private COII~or. Basel
"Art Basel Miami Beach will become one of the
premier cultural events on this continent. It confirms
our clty's role as an emerging destination for art and
cullure. The community will do everything It takes to
ensure that our guests will spend an unforgettable
stay."
MayQf Neisen o. Kalldln, MIami Beach
~Origin of T~~~~~~ ...
,.
8
i 8
i
4
!!cOnvention Activit:y
....
UID
H'
.f N " H H H V U .. w
I_ S.Um"ed EMp.,.dHurn I
~
Tourism
~convention Acti~i~
.....
"""\
1-
.
1
0-
J;
.
E
.
o
E
<
~ " ~ " U M " U . ~
BRoom NIghtS
.Numberof Dltlegatu
~Hotel Occupancy
"Miami-Dade had the highest hotel
occupancy rate out of the nation's 25
top travel markets for the first five
months of 2001, according to
lodging score keeper Smith Travel
Research. The County's hotels were
filled on average 75.6% compared to
the national average of 60.5%."
'BoMialllll-.lhlyll,JDDI
~
6
('
Visitor Profile
10.1 Million Total Visitors to
~ Greater Miami and ~~~~Ches
Ullons
1996 1997 1998 1999 2000
IOStayed In MlamIS..ch .VlsI.d South Beach I
~. Miami Beach Avera. g. ..e. R...O.... om Rates
.. .' 1998 - 2001
r
1998 1999 2000 YTO 2001
Impull V..r . H~h .......1
.~. .Benefits for Mia~~~~=h
. Establishes a long term agreement that ensures a
retum of COT revenues to the Oty.
. Provides a guaranteed minimum revenue stream
of $4.5million per year.
. Addresses sharing of COT revenues If a baseball
stadium ~is" or ~is not" buIlt.
. establishes a termination date for the South
Polnte RDA but continues payments from the
County through 2020.
r
iami Beach Occupancy Trends
30.00%
90.00%
60.00%
0.00%
1985 1990 1995 1999 2000 VTO
2001
~
.:',
Amendment
to the 1996 Interlo.~IAgreement
between the CitY on'1lami Beach
and Miami-Dade County
, CDT Returned to Miami Beach
%o( cua
1996 . 2026 2001.2040 Collection'
19961ntellooal $199.7M 8.6%
With Baseball $1.305B 18.5%
Without Baseball $1.349B 19.2'.4
COT Countywide $2.3B $7.0B
7
~ Termination of S~u.!h~ointe RDA
. Establishes termination date as of September 30,
2005 after the outstanding bonds are defeased.
. Ensures payment to South Polnte of a full year's
tax increment for FY 2004-2005.
. Continues the flow of the ~increment" amount
from the County and allows the City to retain a
portion of the ~increment. amount in the General
Fund
, Summary of Interlocal Amendment
COT South Pointe
POIlIon ADA Tote' NPY
Wllh Baseball $1.305 B $155.9 M I $1.466 B $409M I
Wllhoul Baseball $1.349 B $155.9 M 1$1.505 B $447 M I
1996 Inte~o"1 $198.7 M rn.7M $276.5 M $203 Mill
11)lG"Iln 1991 etl...p'~n of A9"'~"t.
~i Management Outlook
. Implementation of the Capital Improvement
Program
. Implementation of the Business Resolution
Task Force recommendations
. Creation of a strategic Plan and Economic
Development Program
. Investment in Organizational Development
and Intemal Staff Capadty
.~
~ Payments in lieu ~~~:outh Pointe RDA
"llIG 200t
Interktc.' Am.ndrnen1
Addlllon.112 yr. $n.7M
County
50'110 2005 . 2020 $82.1M
25% 2005 - 2018 $20.8M
City
50% 2005 . 2020 $73.0M
TOTAL $n.7M $15UM
.
,;~:~'.
.........
Managem~!l~. .
Outlook
~i Management O~~~k
. Enhancement of Management Team
through recruitment of key senior level
positions
. Realignment of reporting relationships
. Economic Development, Tourism and
Cultural Development
. Operations and Services
. Internal Support Services
"""'\
8
r
~ Management 9utlook
. Major Initiatives and Projects
. 72nd Street Site
. 17th Street 'City Center" Site
. Implementation of the Capital
Improvement Program
. Convention Center Space Analysis
I"'"'
.~ 5 Year Vis~<:>~.~orthe City
. Cleaner and Safer
. More Beautiful and Vibrant
. Mature and stable with we)1 improved
infrastructure
. A unique urban environment
. A cultural, entertainment. tourism capital
. An international center for innovation in
culture. recreation and business
Property Values
.,.
("
"* General Fund .
,
~ Citywide Assesse<j ~r?perty Values
. Increase from $8.37 billion
to $9.40 billion assessed
value from Miami - Dade
County as of July 1
. Increase of $1.03 Billion
(12.3%) in values over 2000
values
. Increase of $6.5 Million in
Ad Valorem Tax at 7.299m
over 2000 (10.8%)
9
City Center RDA
iI,I,'
...~4
. Created Feb. 1977
. 95% of the tax increment
from City and County to
RDA
. 6thSt to Gov't. cut and Alton
Rd to the Ocean .
. Base value - $59.6 million
. Increase in assessed value -
$674.7 million or 1,131%
. Created April 1993
. 95% of the tax increment
from City and County to RDA
. 24th St to 14th Lane; West
Ave to the Ocean
. Base value - $292.6 million
. Increase in assessed value
$925.6 million or 316%
General Fund Revenues
'. FY 2001-2002
-..,
~.. South pointe._~~~
. Increase from $733 million
to $841 million assessed
value from Miami - Dade
County as of July 1
. Increase of $108 million
(14.7%) in values over
2000 values
. Increase of $682 thousand
in Ad Valorem tax at
7.299m (14.4%)
~Pty Center RDA
. Increase from $1.04
billion to $1.22 billion
assessed value from
Miami - Dade County as
of July 1
. Increase of $180 million
(17.3%) in values over
2000 values
. Increase of $1.2m in Ad
Valorem tax at 7.299m
(22.4%)
--..
~.' General Fund Pr~~rty Value and Tax
.' . Increase from $6.60 billion
to $7.34 billion assessed
value from Miami - Dade
County as of July 1
. Increase of $740 Million
(11.2%) in values over 2000
values
. Increase of $4.6 Million in
Ad Valorem Tax at 7.299m
over 2000 (9.3%)
''''''''I
10
r
/"'""'
~property Tax Le~~~..~~lues
~General Operating ~ax ~~~s
,0..
*
'5
j
f
.E
90
80
70
60
50
...
30
20
10
o
:0 I . u
J
6 ;f ~ Ul
i !
4 ;; 7A
.. ~
2 r .. u
0
o ;: u
,\,
\,
f-- '\
f- - f::: !2
f-- i- '-- f-- f- I--
f- r- f- - r- i- l-
f-- - f- r- '- f-- '-- f- I--
j
~
..
};
m ,~ "
93 94 95 16 '7 98 II '00 '01 'D2
n N 'S " w " " ~ ~ ~
FlKlltV.....
CJAdCJPtedRllte t:JT~"" -RoIlllac:klllMe
ClTaJC Levy _PropeI'tJ Values
~t General Obliga~i~~.~.ebt Service Millage
1roperty Tax ~~~=s
~.
I
I II
I I I I I I I I I
...
La
...
" M d M ~ n " ~ .~ ~
F~Y'"
. MIll'" btIJ
" " 95 K " H " " ~ ~
I SilPI!!'!P'!ngMUIOGe __. Millage
.......-
r
~ Property Taxes.,
.The Oty Commission has tentatively
set the millage for fiscal 2002 as
follows:
.General operating at 7.299, which is
a reduction of .10 mills from FY
2001;
.Debt Service at 1.077, which is a
reduction of .079 mills from FY2001
~Direct and Ove~~~~ing Tax Rates
"The combined tax rate on property
owners in the Oty has declined from a
high of 32 mills in 1993 and has
decreased to approximately 25.4 mills
for FY 2002.
11
~" Direct and Ove~~pping Tax Rates
3.
30
8 2.
" .
~ 20
>
'0 16
10
93 94 " 96 ~ " " 00 01 ~2
I faClty CJCounly c:JSchoa' District CSt.t. Agencl..1
Fund Balance
~
. $13.4 M in FY 97
. $14.5 M in FY 98
. $21.3 M in FY gg
. $26.7 M in FYOO
. $28.6 M est. FY 01
"
2S
II
.
c
~ 15
;;;
11
97 1& tI n
IilA'to'l mprojtcted
"Resort Tax
Revenues
,
~'.. Other Rever\~~~.
12
10
JS
16
4
2
o
UlilltyT.txes St:Il:I!TIll FrInchlst ~& tnDerest M~
.... -"
Imltt' .11111. f.llH' 02000 C2001_t.1
~ General Fund
T ". The FY 2001 proj~;;df~nd balance includes:
~,
.. $14,2 million designated for contingendes,
.. $12.2 million unreserved
.. $2.2 million other reserves
.. 22.1% of budget In equity.
~
Total Room, Food, Beverage and
Alcohol RevenYE;lS by Area
$700
$600
$500
$400
$300
$200
$100
$. M
os
H 97
I_North Beach _Middle Beach _South Beach I
-.,
12
r
r
r
~
$35,000,000
$30.000,000
$25.000.000
$20.000,000
$15,000,000
$10,000,000
$5.000,000
$-
Actual and Projected Resort Tax
H ~ n " 00 ~ ~ ~ ~ ~
I_ 2%. actual .1% ~ actual .2.% ..pro)eeted 01.4 - projected 0 1
~ Recent Bon~Issues
. During Fiscal 2001 the City has issued:
. $54 million Water and Sewer Bond;
. $52 million Stormwater Bond;
. $15 million loan with the Gulf Breeze Loan
Pool for improvements to the City's golf
courses, and
. Converted $32 million of debt from variable
to fIXed rates to eliminate restrictive
covenants and increase borrowing capacity
:f. Net Bonded Debt !<>.Assessed Values
92 13 84 95 96 97 ,. 99 '00 'Ot
....
Ie Percentage of Net Bonded Debt to Assessed Valu_1
~Bond Program
~ General obliga~i~n Bonds
. As of 9/30/01 the City will have $50.9
million of General Obligation Bonds
outstanding.
. The City anticipates issuing the second
series of bonds In late FY2oo2 or early FY
2003.
Ratio of General Obligation Debt Service
to General Fund Expenditures
un" M ~ H ~ H " ~
1111 Ratio of G 0 Debt Service to Gen. fund Exp.1
13
.~.. Stormwater l_me~V'ements
. The City has issued $52 million of
revenue bonds for stormwater
improvements.
. During July 2000 the City Commission
approved increased stormwater fees
to be implemented each October 1
for the next six years. The ERU Fees
increase from $3.25 in FY 2001 to $5.80
in FY 2006.
~
Net Revenues of Water and Sewer
Funds and Bond Coverage
14
12
10
8
8
4
2
o
95
98
'00
. NIt Revenue AVllllbI,
99
oDobtSorllce
~
97
.~. Parking Systen:t
. The Parking System produced net
Income of $4.7 million in FY 2000.
. Net revenues of $10.1 million were
available to pay $2.2 million of debt
service.
~
~. Water and Sewer Improvements
. The Oty has issued $54 million of
revenue bonds for the second phase
of water and sewer improvements
. During July 2000 the City Commission
approved increased water and sewer
rates to be implemented each October 1
for the next six years.
. Both water and sewer rates are set to
increase by 2.25% annually.
~. Parking Im~~~~=.rTl=~ts
. Public - Prlvate parking projects
Collins Ave/10th St - 2001
Washington Ave/16th St. - 2002
17th Street / Lincoln Lane and
Jefferson/Michigan 2001
. 1500 new parking spaces
. Over 200,000 S.F. of Class A offICe space and
75,000 S.F. of new retail space
. Parking Demand Analysis underway to assess
current and future needs
~
tet Parking Reven~~~a~d Bond Coverage
"
12
11
10
.
: 8
~ ~
;;; .
4
3
2
1
o
.5
.7
'00
..
..
.0
III Debt Service
C1Avan.b.. Revenun
."'"
14
r
r
r
~
In Summary the City of Miami Beach
demonstrates:
. Strong and continued growth in
property values
. Conservative tax millage
. Mandate to Maintain Fund Reserves
. Commitment to Citywide Improvements
- Capital Program
. Commitment to Fiscal Responsibility -
5 Year Fi(lancial Forecast
~
Resulting In:
. A vital and
involved
community
with a
commitment
to fiscal
responsibility
15