2001-24565 RESO
RESOLUTION NO. 2001-24565
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING:
1) THE TENTATIVE AD VALOREM MILLAGE OF 7.299
MILLS FOR GENERAL OPERATING PURPOSES WHICH IS
NINE PERCENT (9.0%) GREATER THAN THE "ROLLED-
BACK" RATE OF 6.695 MILLS; 2) THE DEBT SERVICE
MILLAGE RATE OF 1.077 MILLS; AND 3) SETTING 5:01
P. M., FRIDAY, SEPTEMBER 21, 2001, FOR THE SECOND
PUBLIC HEARING TO CONSIDER THE MILLAGE RATE
FOR FISCAL YEAR 2001/02.
WHEREAS, on July 25, 2001, the City Commission adopted Resolution #2001-24547
which set the proposed millage rates at 7.299 for operating and 1.077 for debt service. The operating
millage of 7.299 is a decrease of 0.1 00 mills from the Administration recommendation of7.399; and
WHEREAS, Florida Statutes 200.065 requires that at the conclusion of the first public
hearing on the proposed tax rate and budget, the City Commission: 1) adopt a tentative ad valorem
millage rate for FY 2001/02 operating purposes. This is accomplished by adopting a Resolution that
includes the percentage increase or decrease over the "Rolled-back" rate; 2) the required Debt
Service millage rate; and 3) the date, time, and place of the second public hearing.
NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that, pursuant to Section
200.065, Florida Statutes, there is hereby levied a tax for the Fiscal Year (FY) 2001/02 on all taxable
and non-exempt real and personal property located within the corporate limits of the City of Miami
Beach, Florida, as follows:
(a) For the purpose of operating the government of the City, the rate assigned
amounts to 7.299 mills. Also included are appropriate reserves and
contingencies, which are not limited to reserves for tax discounts and
abatements of uncollected taxes.
The millage rate reflected is nine percent (9.0%) greater than the "Rolled-
back" rate of 6.695 mills.
(b) For the purpose of providing payment on the principal and interest portions
of the General Obligation Bond Debt outstanding, the rate assigned amounts
to 1.077 mills.
(c) The tentative adopted millage rates for the City of Miami Beach, Florida for
FY 2001102 is subject to a second and final public hearing at 5:01 p.m.,
Friday, September 21, 2001, in the City Commission Chambers, City Hall,
1700 Convention Center Drive, Miami Beach, Florida.
APPROVED AS TO
PASSED and ADOP,eRNf*I:AlIGltABLSeotember. 2001.
& FOR EXECUTION ~f/J
ATTEST:
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114 \ CITY CLERK t4~.,~ Date A YOR
.-
CITY OF MIAMI BEACH
NOTICE OF PUBLIC HEARINGS
l.C
NOTICE IS HEREBY given that pUblic hearings will be held by the City
Commission of the City of Miami Beach on Wednesday, September 5,
2001. at the times listed below, in the Commission Chambers, 3rd I
Floor, City Hall, 1700 Convention Center Drive, Miami Beach, Florida. ~
at 5:01 p.m.:
A public hearing on the proposed millage rate and budget for Fiscal
Year 2001/02 for the City of Miami Beach.
at 5:02 p.m.:
A public hearing on the proposed miliage rate and budget for Fiscal
Year 2001/02 for the Normendy .Shores Local Government
Neigh.borhood Improvement District.
Inquiries concerning this meeting should be dire~d to the Office. of
Management and Budget at (305) 673-7510.
Robert E. Parcher, City Clerk
City of Miami Beach .
Pursuant to Section 286.0105. Fla. Stat.. the City hereby advises the
public that: If a person decides to appeal any decision made by the City
Commission with respect to any matter considered at its meeting or its
hearing. . such person must ensure that a verbatim record of the
proceedings is made, which record includes the testimony and evidence
upon which the appeal is to be based. Thi"s notice does not constitute
consent by the City for the introduction or admission, of othernise
inadmissible or irrelevant evidence, not does it authorize ~hallenge~ 9r
appeals not otherwise allowed by law. . .
In accordance with the Americans with Disabilities Act of 1990, persons
needing special accommodation. to participate in this,. proceeding
should contact the City Clerk's office. Telephone (305) 673-7411 for
assistance; if hearing impaired, telephone the Florida Relay Service
numbers, (800) 955-8n1 (TOO) or (8QO) 955-8nO (VOICE), for
assistance.
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CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http:\\ci.miami-beach.fl.us
COMMISSION MEMORANDUM
FROM:
Jorge M. Gonzalez
City Manager
Mayor Neisen O. Kasdin and
Members of the City Commission
~~
DATE: September 5, 2001
TO:
SUBJECT:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, ADOPTING: 1) THE TENTATIVE AD
VALOREM MILLAGE OF 7.299 MILLS FOR GENERAL OPERATING
PURPOSES WHICH IS NINE PERCENT (9.0%) GREATER THAN THE
"ROLLED-BACK" RATE OF 6.695 MILLS; 2) THE DEBT SERVICE
MILLAGE RATE OF 1.077 MILLS; AND 3) SETTING 5:01 P. M., FRIDAY,
SEPTEMBER 21, 2001, FOR THE SECOND PUBLIC HEARING TO
CONSIDER THE MILLAGE RATE FOR FISCAL YEAR 2001/02.
ADMINISTRATION RECOMMENDATION
The Administration recommends that the City Commission adopt the attached Resolution which sets
the following:
1) Tentatively adopted millage rates for Fiscal Year (FY) 2001/02
General Operating 7.299 mills
Debt Service 1.077 mills
Total 8.376 mills
( 7.399 last year)
( 1.156 last year)
( 8.555 last year)
2) The tentatively adopted combined millage rate of 8.376 mills is .179 mills or 2.1 % less than
the 8.555 combined millage rate for FY 2000/01. While the tentatively adopted operating
millage rate of 7.299 mills for FY 2001/02 is lower than the rate for FY 2000/01, state
statute requires that we advertise that this rate is 9.0 % greater than the "Rolled-back" rate
of 6.695 mills.
3) The second public hearing to consider the final millage rates and budgets for FY 2001/02
shall be at 5:01 P.M., Friday, September 21,2001 in the City Commission Chambers, City
Hall, 1700 Convention Center Drive.
AGENDAITEM~
DATE 9-S'-o(
Tentative Operating and Debt Service Millages
September 5, 2001
Page 2
PROCEDURE
Florida Statutes 200.065 requires that at the conclusion of the first public hearing on the proposed
tax rate and budget, the City Commission proceed in the following specific manner:
1. Adopt a tentative ad valorem millage rate for FY 2001102 operating purposes. This is
accomplished by adopting a Resolution that includes the percentage increase or decrease
over the "Rolled-back" rate; the required Debt Service millage rate; and, the date, time, and
place of the second public hearing.
State statute requires that only the title be read aloud.
2. Adopt a tentative general operating budget for FY 2001102. Also included, are budgets for
the Enterprise and Internal Service Funds. This is accomplished by adopting a companion
Resolution. (See accompanying Agenda Item R7A2).
Both the millage and budget Resolutions must be adopted again after a second and final public
hearing.
Procedurally, a millage either greater than or less than 7.299 mills may be adopted at this first
hearing. However, any millage rate adopted at the end of either the first or second public hearings
which exceeds the millage rate of 7.299 mills established on July 25, 2001, and certified to the
Property Appraiser, would require mailinl!: ofa revised notice ofnronertv taxes to each taxnaver.
The notice would be nrenared bv the Pronertv Annraiser. at the exnense of the taxinl!:
authoritv. and must nrecede the final hearinl!: bv 10 to 15 davs.
ANALYSIS OF PROPERTY VALUES IN MIAMI BEACH
On June 29,2001, the City received the "2001 Certification of Taxable Value" from the Miami-Dade
County Property Appraiser. It stated that the preliminary gross taxable value of both real and
personal property for the City of Miami Beach is $9,398,715,152, including $338,232,674 in new
construction which is the second largest increase this City has experienced in its recent history.
The preliminary 2001 value represents an increase of 14.6 percent over 2000's final gross taxable
value of $8,198,698,509. Alternately, the increase is 12.3 percent over 2000's preliminary gross
taxable value of$8,367,448,538. The difference of$168,750,029 between 2000's preliminary and
final values represents the equalization loss of less than 2.1 percent due to appeals, etc.
The comparative assessed values for the Miami Beach Redevelopment Agency South Pointe
redevelopment district increased by $107,639,226 or 14.7 percent from $773,075,306 to
$840,714,532. The assessed values in the City Center redevelopment district increased by
$179,972,113 or 17.3 percent from $1,038,250,650 to $1,218,222,763.
Tentative Operating and Debt Service Millages
September 5, 2001
Page 3
DETERMINING THE OPERATING MILLAGE LEVY
The first building block in developing a municipal budget is the establishment of the value of one
mill of taxation, wherein the mill is defined as $1.00 of ad valorem tax for each $1,000 of property
value. For the City of Miami Beach, this value is determined by the 200 I Certification of Taxable
Value and has been set at $9,398,715. Florida Statutes permit a discount of up to five percent for
early payment discounts, delinquencies, etc. For the City of Miami Beach, the discount utilized is
3.5 percent. Therefore, the 96.5 percent value of the mill is $9,069,760.
The proposed millage rate of 7.299 mills will generate ad valorem tax revenues of $66,200,178 (of
which $11,834,537 will be transferred to the Redevelopment Agencies) for a net revenue total of
$54,365,641 in the General Fund. The net General Fund ad valorem budget has increased
$4,616,986 (9.3%) from $49,748,655 to $54,365,641. The total amount is $7,661,177 more than the
prior year levy of$58,539,001, reflecting a 13.1 percent increase.
DETERMINING THE DEBT SERVICE MILLAGE LEVY
The debt service payment for FY 2001/02 is $9,768,132 and requires a tax rate of 1.077 mills. This
rate is 0.079 mills, or six and eight tenths percent (6.8%) less than the FY 2000/01 rate of 1.156
mills.
COMBINING THE OPERATING AND DEBT SERVICE MILLAGE LEVIES
Illustrated below is a comparison of the combined millage rates and ad valorem revenues to the City
of Miami Beach for FY 2000/01 (final) and FY 2001/02 (preliminary).
Tax Rate Tax Levy
FY 00/01 FY 01/02 Inc/(Dec) FY 00/01 FY 01/02 Inc/(Dec)
General Operating 7.399 7.299 (0.100) $58,539,001 $66.200.178 $7.661,177
Debt Service 1.156 1.077 10.079) 9.145.977 9.768.132 622.155
TOTAL 8.555 8.376 (0.179) $67,684,978 $75,968.310 $8,283,332
Ifthese proposed tax rates are adopted, then the combined tax rate will decrease by 0.179 mills, or
2.1 percent less than the current year. The operating millage will decrease by 0.100 or one and four
tenths percent (1.4%), and debt service millage will decrease by 0.079 mills, or six and eight tenths
percent (6.8%).
COMBINING JURISDICTIONAL OPERATING AND DEBT SERVICE MILLAGE LEVIES
City of Miami Beach property owners must also pay property taxes to Miami-Dade County, the
Miami-Dade County School Board, the South Florida Water Management District, and the Florida
Tentative Operating and Debt Service Millages
September 5, 2001
Page 4
Inland Navigation District. In FY 00/01, the Miami Beach portion of the total tax bill was 33.3
percent. The proposed millage rates for FY 2001102 will decrease the Miami Beach portion of
the tax bill to 32.9 percent based on tax rates announced by other jurisdictions.
Revised FY 2001102 tax rates may be considered by Miami-Dade County in September. The
countywide tax rate will increase to 5.851 mills; the County's debt service will remain at 0.652 mills.
The Library District will increase to 0.451 mills. While it is not possible to determine the exact
amount returned in additional services, it should be noted that Miami-Dade County returned
$7,585,042 during FY 2000/01 in tax-increment funds for the Redevelopment Agency and its two
tax-increment districts.
The Miami-Dade County School Board is scheduled to discuss its final tax rate on September 12,
2001, but has tentatively announced a decrease of 0.241 mills from the current rate of9.6l7 mills.
III
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ustrate e ow are e current an orooose tax rates or e mu tJple taxmg au ontJes.
Adopted Proposed % %of
Taxing Jurisdiction FY 00/0 I FY 01/02 Ine/(Dec) Change Total
Miami Beach 32.9
General Operating 7.399 7.299 (0.100) (1.35)
Debt Service 1.156 1.077 (0.079) (6.83)
Dade County 27.3
Countywide Operating 5.751 5.851 0.100 1.74
Library 0.351 0.451 0.100 28.49
Debt Service 0.652 0.652 0.000 0.00
School Board 9.617 9.376 (0.241) (2.51) 36.9
Other 0.738 0.736 (0.002) (0.27) 2.9
Totals 25.664 25.442 (0.222) (0.87) 100.0
COMBINED MILLAGE LEVY IMPACT ON THE HOMEOWNER
Amendment 10 to the State Constitution took effect on January 1, 1995 and limited the increase in
assessed value of homesteaded property to the percentage increase in the consumer price index (CPI)
or three percent (3%), whichever is less. For 2001, the CPI has been determined to be 3.5 percent
and therefore, the increase is capped at 3 % for increased values as of January 1,2001. The $25,000
homestead exemption is applied after the increase in value as follows: assuming that the average
residential property in Miami Beach was valued at $200,000, that value is increased by the 3.0 %
percent to a new value of $206,000. The homestead exemption of $25,000 is then deducted, yielding
a taxable value of$181,000.
Tentative Operating and Debt Service Millages
September 5, 2001
Page 5
Using the proposed tax rates, that value is then taxed as follows:
Taxing
Jurisdiction
Proposed
@ 7.299
1.077
8.376
Miami Beach
Miami-Dade County
School Board
Other
$18.93
76.72
14.08
3.99
Totals
$113.72
At the combined proposed millage rate of 8.376, the total dollars for both operating and debt service
paid to the City when compared to the prior year's taxable value of $200,000 and 8.555 millage rate,
would increase by $18.93. The overall taxes would increase by $113.72. This, of course, assumes
that the other taxing jurisdictions adopt these millages.
SECOND PUBLIC HEARING
The second public hearing on the tentatively adopted millage rate and budget for FY 2001/02 must
be advertised no later than 15 days after the first public hearing.
It is recommended that the second public hearing be set for 5:01 P.M., Friday, September 21,2001
in the City Commission Chambers, City Hall, 1700 Convention Center Drive.
CONCLUSION
The Administration recommends adoption of the attached Resolution which sets both tentative
operating and debt service millage rates for FY 2001/02 and establishes a second public hearing to
be held on September 21,2001, at 5:01 P. M.
JMG:PDW:JC
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