2012-28013 Reso RESOLUTION No. 2012-28013
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ADOPTING: 1) THE FINAL AD VALOREM
MILLAGE OF 6.0909 MILLS FOR GENERAL OPERATING PURPOSES,
WHICH IS EIGHT AND FOUR-TENTHS PERCENT (8.4%) MORE THAN THE
"ROLLED-BACK(" RATE OF 5.6184 MILLS; AND 2) THE DEBT SERVICE
MILLAGE RATE OF 0.2568 MILLS FOR FISCAL YEAR (FY) 2012/13
WHEREAS, on July 18, 2012, the City Commission following a duly noticed public
hearing, adopted Resolution No. 2012-27960, which set the proposed general operating millage
rates at 6.1122 mills (excluding debt service) reduced from the prior year millage for general
operating.purposes, and 0.2568 mills for debt service, a reduction from the prior year; and
WHEREAS, on September 12, 2012 the Mayor and City Commission tentatively adopted
the operating millage rate of 6.0909 mills for general operating purposes, and 0.2568 mills for
debt service; and
WHEREAS, Section 200.065, Florida Statutes, requires that at the conclusion of the
second public hearing on the City's proposed tax rate and budget, the City Commission: 1) adopt
the ad valorem millage rate for FY 2012/13 operating purposes; and 2) the required Debt Service
millage rate; and this is accomplished by publicly announcing the name of the taxing authority, the
"Rolled-back" rate, the percentage increase of the "Rolled-back" rate and the millage rates before
adoption of the millage levy resolution; and
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) 2012/13, 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 6.0909 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 eight and four-tenths percent (8.4%) more than
the "Rolled-back" rate of 5.6184 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 0.2568 mills.
07012- .2000/
PASSED and ADOPTED this 27th day of September, 2012.
-W6).
AY
ATTEST:
INCORP ORATED
1-f 26
CITY CLERK
APPROVED AS TO
FORM & LANGUAGE
&FOR CUTION
Ci
Aft n Date
COMMISSION ITEM SUMMARY
Condensed Title:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,
ADOPTING:1)THE FINAL AD VALOREM MILLAGE OF 6.0909 MILLS FOR GENERAL OPERATING PURPOSES,
WHICH IS EIGHT AND FOUR-TENTHS PERCENT(8.4%)MORE THAN THE"ROLLED-BACK"RATE OF 5.6184
MILLS;AND 2 THE DEBT SERVICE MILLAGE RATE OF 0.2568 MILLS
Key Intended Outcome Supported:
Minimize taxes; Control Costs of payroll including salary and fringes;ensure expenditure trends are sustainable
over the long term; Improve the City's overall financial health and maintain overall bond rating; Increase
community satisfaction with city services
Supporting Data(Surveys, Environmental Scan, etc.):
Over the last several years,the City of Miami Beach has adopted budgets that provided tax and fee relief while at
the same time providing improving services that address community priorities (e.g. public safety, cleanliness,
landscaping and beautification,recreation and cultural arts programming,renewal and replacement funding for our
facilities,and building/development functions). In FY 2007/08 alone,the property tax rate declined by approximately
1.8 mills,with savings to the average property owner of over$400. In addition,in FY 2005/06 and FY 2006/07,the
City funded$200 and$300"homeowner dividends"paid to homesteaded property owners in the City.
However, recent years have been very challenging due to declines in property values and increasing costs,
particularly pension costs. Since FY 2007/08,property values have declined$3.8 billion to the July 1,2012 certified
taxable value,a reduction of approximately 14 percent,despite about$3 billion in new construction added to the roll.
The July 1,2012 Certification of Taxable Value from the Miami-Dade County Property Appraiser reflects an increase
of 5%in property values for the City as a whole, 5.4%in the RDA and 4.9%outside of the RDA.
Issue:
Shall the Mayor and City Commission adopt the resolution?
Item Summa /Recommendation:
The total proposed final operatin_a millage is reduced from FY 2011112 at 6.0909 mills, including a general
operating millage rate of 5.9826 and a General Fund Capital Renewal and Replacement millage of 0.1083.The voted
debt service millage rate is decreased from 0.2884 to 0.2568.
The proposed millage provides funding for a$.8 million set aside for FY 2013/14 to offset the loss of a one-time carry
forward of$2.2 million in FY 2011/12 pension credit savings in the General Fund to FY 2012/13.This is equivalent to
0.0585 mills. Net of enhancements in the Building Department,which are offset by increased revenue,the millage
provides for$2.85 million in service enhancements as a return on value to our taxpayers including, twelve Police
Officers, additional Police overtime for homeless outreach, additional staffing for Police Records and Detention
Center, increased internal controls, additional staff to manage a $2 million growth in lease revenues over the last
three years, and$1.4 million transfer to capital pay-as-you-go projects.(equivalent to 0.1520 mills
Advisory Board Recommendation:
Financial Information:
Source of Amount Account
Funds: 1
2
OBPI Total
Financial Impact Summary: The combined millage rate overall remains approximately 2.4 mills lower than it
was in FY 1999/00. In addition,the millage rate is approximately 1.3 mills lower than it was in FY 2006/07,when
property values were similar to the July 1,2012 certified values resulting in a net tax levy reduction of$29 million
since FY 2006107.
City Clerk's Office Legislative Tracking:
Sign-Offs:
Department Director Assistant City Manager City ager
&AIAMIBEACH AGENDA ITEM R 7 A t
� SATE
MIAMI BEACH
City of Miami Beath, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Kathi G. Brooks, Interim City Manager A/� _
DATE: September 27, 2012
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, ADOPTING: 1) THE FINAL AD VALOREM MILLAGE OF 6.0909
MILLS FOR GENERAL OPERATING PURPOSES, WHICH IS EIGHT AND FOUR-
TENTHS PERCENT (8.4%) MORE THAN THE "ROLLED-BACK" RATE OF 5.6184
MILLS;AND 2)THE DEBT SERVICE MILLAGE RATE OF 0.2568 MILLS FOR FISCAL
YEAR (FY) 2012/13.
ADMINISTRATION RECOMMENDATION
The Administration recommends that the City Commission adopt the attached Resolution which
sets the following:
1) Final adopted millage rates for Fiscal Year(FY)2012/13
General Operating 5.9826 mills(6.0572 FY 2011/12, 0.0746 decrease)
Capital Renewal & Replacement 0.1083 mills (0.1083 FY 2011/12, no change)
Sub-Total Operating Millage 6.0909 mills(6.1655 FY 2011/12, 0.0746 decrease)
Voted Debt Service 0.2568 mills(0.2884 FY 2011/12, 0.0316 decrease)
Total 6.3477 mills (6.4539 FY 2011/12,0.1062 decrease)
2) The final adopted combined millage rate of 6.3477 mills is 0.1062 mills less than the 6.4539
combined millage rate for FY 2011/12. The final adopted operating millage rate for FY
2012/13 is 6.0909 mills. The final adopted operating millage for FY 2012/13 is 0.4725 mills
more than the roll-back rate of 5.6184, and thus, the City is required to publish a Notice of
Proposed Tax Increase. This notice was duly published in the Miami Herald on Sunday,
September 23, 2012 in accordance with Florida Statutes 200.065.
The first public hearing on the tentative millage rates and budgets for FY 2012/13 was held on
Wednesday, September 12, 2012. The millage rates presented herein are those which were
tentatively adopted at the end of that first public hearing.
The rollback rate is the millage rate required to produce the same level of property tax revenues in
FY 2012/13 as collected in FY 2011/12. The rollback rate is calculated by dividing the prior year
property tax revenues by the current year property values, after new construction, major
improvements, annexations, deletions and tax increment districts are removed from current year
FY 2012/13 Final Millage Adoption
September 27, 2012
Page 2
property values. It is important to note, that the January 1, 2011, tax roll Citywide declined by$1.2
billion (5.6%) between the July 1, 2011 valuation and the July 1, 2012 valuation due to appeals,
adjustments, etc, which is part of the reason the FY 2012/13 "roll-back rate" is lower than the FY
2011/12 current millage rate and lower than it would be if the roll-back rate was only adjusted for
the increase in revenues generated by higher property values. The area outside of City Center
RDA, which impacts General Fund revenues, declined by almost $1 billion during the same time
period.
The Administration is recommending a total combined millage rate for the City of Miami Beach of
6.3477.The total proposed operating millage declines to 6.0909 mills, including a general operating
millage rate of 5.9826 and a General Fund Capital Renewal and Replacement millage of 0.1083.
The proposed voted debt service millage rate is adjusted from 0.2884 to 0.2568, a decrease of
0.0316 mills.
The proposed millage provides funding to partially offset increases in employee costs as well as
funding approximately $2.85 million in enhancements (excluding Building Department
enhancements which are funded by increased Building Department revenues).
PROCEDURE
Florida Statutes 200.065 requires that at the conclusion of the second public hearing on the
proposed tax rate and budget, the City Commission proceed in the following specific manner:
1. Adopt an ad valorem millage rate for FY 2012/13 operating purposes and debt service. The
statute requires the name of the taxing authority, the "Rolled-back" rate, the percentage
increase over the "Rolled-back" rate, and the millage rates be publicly announced before
adoption of the millage levy resolution.
State statute requires that only the title be read aloud.
2. Adopt a general operating budget for FY 2012/13. Also included, are budgets for the
Enterprise Funds and Internal Service Funds and general Ad Valorem taxes. This is
accomplished by adopting a companion Resolution. (See accompanying City Budget
Agenda Item).
SUMMARY
In FY 2010/11 the City's approach to addressing the then deficit of $32 million included a
distribution of the shortfall between taxpayers and employees. Taxpayers had their tax rate
increased from 5.6555 to 6.2155, an increase of 0.56 mills.The goal of the Commission has been
to bring them back to that level as property values increase over time. It should be noted that
between FY 2009/10 and FY 2010/11 values declined by $2.6 billion driving the need for an
increase in the millage. The FY 2012/13 values are still short of FY 2009/10 values by$1.6 billion.
As values approach FY 2009/10 values,through further increases in the future,this will provide the
opportunity for further reductions in the millage.
In FY 2011/12 the City took its first step in that direction with a reduction in the millage rate of 0.05
mills. The tentatively adopted millage rate for FY 2012/13 reduces the operating millage by an
additional 0.0746 mills and a total reduction of 1.0620 mills including the reduction in debt service
millage. The total millage reduction over the two fiscal years is .01246 mills. Over two years, this
FY 2012/13 Final Millage Adoption
September 27, 2012
Page 3
reduction represents 22 percent of the goal to return to a millage rate of 5.6555.
The proposed millage has been developed based on $2.6 million in employee givebacks in the
General Fund to partially offset $5.7 million in pension and health increases. These employee
givebacks will need to be negotiated with bargaining groups over the coming year. Further, the
proposed millage incorporates a set aside of$1.1 million for FY 2013/14 to partially offset the loss
of a$2 million one-time pension credit($2.5 million citywide)in FY 2012/13 that will not be available
for FY 2013/14. Should this be used instead to further reduce the millage,it would result in a further
reduction of .0585 mills.
The Administration is recommending a total combined millage rate for the City of Miami Beach of
6.3477. The total proposed operating millage declines to 6.0909 mills, including a general
operating millage rate of 5.9826 and a General Fund Capital Renewal and Replacement millage of
0.1083. The proposed voted debt service millage rate is adjusted from 0.2884 to 0.2568, a
decrease of 0.0316 mills.
It is important to remember that in prior years, the City of Miami Beach significantly reduced tax
rates as property values increased. Between FY 1999/00 and FY 2009/10, total combined City of
Miami Beach property tax rates declined approximately 2.8 mills. In FY 2007/08 alone,the millage
rate declined by approximately 1.8 mills,with annual savings to the average homesteaded property
of over$400. Further, despite an increase of 0.56 mills in the operating tax rate in FY 2010/11,City
of Miami Beach tentatively adopted combined millage rates today remain more than 2.3 mills lower
than in FY 1999/00 (25 percent), and approximately 1.3 mills lower than 2006/07 when property
values were similar to today's values.
ANALYSIS OF PROPERTY VALUES IN MIAMI BEACH
On July 1, 2012, the City received the "2012 Certification of Taxable Value" from the Property
Appraiser's Office stating that the taxable value for the City of Miami Beach is $23,072,321,980
including $96,864,874 in new construction. The preliminary 2012 value represents an increase of
$1.1 billion or 5.0 percent more than the July 1, 2011 Certification of Taxable Value of
$21,978,289,928, and an increase of 5.0 percent excluding new construction.
The comparative assessed values for the Miami Beach Redevelopment Agency City Center
Redevelopment District(City Center RDA)increased from $3,423,353,944 to$3,608,718,451, an
increase of $185,364,507, or a 5.4 percent increase in values over 2011 certified values. In
addition, assessed values within the geographic area formerly known as the South Pointe
Redevelopment District increased from $3,446,036,913 to $3,618,097,360, an increase of
$172,060,447, or a 5.0 percent increase in values over 2011 certified values. As a result,taxable
values in the areas outside the City Center RDA/South Pointe area increased by 4.9 percent,from
$15.1089 billion to $15.8455 billion, an increase of$0.7366 billion.
Citywide values excluding the City Center RDA increased from$18.5549 billion to$19.4636 billion,
an increase of$0.9087 billion, or 4.9 percent.Values outside the City Center RDA area determine
General Fund revenues.
FY 2012/13 Final Millage Adoption
September 27, 2012
Page 4
COMPARATIVE ASSESSED VALUES (in billions)
Jan. 1 2012
Value(in Change from 2011
Jan. 1 2011 Value in billions billions) Value Bud et
As of July 1
2011 Revised As of July 1
(For FY Value(For 2011
2011112 FY 2011/12 Change in (For 2011/12 $
Budget) Proiection) 2011 Values % Ch g. Budget) in billions % Ch
RDA-City Ctr $ 3.4233 $ 3.1299 $ (0.2934) -8.6% $ 3.6087 $ 0.1853 5.4%
South Pointe* 3.4460 3.2393 (0.2067) -6.0% 3.6181 $ 0.1721 5.0%
General Fund excl S.Pte 15.1090 14.3860 (0.7229) -4.8% 15.8455 $ 0.7366 4.9%
Total Citywide $ 21.9783 $ 20.7552 $ (1.2231) -5.6% $ 23.0723 $ 1.0940 5.0%
Citywide Net of City Ctr
$ 18.5550 $ 17.6253 $ (0.930)1 -5.0% $ 19.4636 $ 0.9087 4.9%
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 for each mill is determined by the 2012 Certification
of Taxable Value and has been set at$23,072,322. Florida Statutes permit a discount of up to five
percent for value adjustments, early payment discounts, delinquencies, etc. Therefore, the 95
percent value of the mill is $21,918,706.
However, net of City Center RDA tax increment, which represents the amount available to the
General Fund, the 95 percent value of the mill is $18,768,367.
Impacts of Decline in Property Values
In FY 2011/12, the operating millage rate for general City operations was adopted at 6.1655.
Based on the July 1, 2012, Certification of Taxable Value, 6.1655 mills would generate
approximately$135,139,781 in general tax revenues, an increase of$6,407,992 over FY 2011/12
budgeted property tax revenues Citywide (General Fund, City Center RDA and the South Pointe
area).
However, the January 1, 2011, tax roll Citywide declined by$1.2 billion between the July 1, 20.11
valuation and the July 1, 2012,valuation due to appeals,adjustments,etc.,which resulted in the FY
2012/13"roll-back rate"being significantly less than the FY 2011/12 current millage rate.The area
outside of City Center RDA declined by almost$1 billion.
Maximum Millage Determination
Further, pursuant to recently enacted State legislation,the City may elect to approve millage rates
above the roll-back rate up to the constitutional cap of 10 mills subject to the following votes by the
Commission or referendum:
FY 2012/13 Final Millage Adoption
September 27, 2012
Page 5
• Option I: A majority of the Commission is required to approve a millage up to 8.0844
(equivalent to 100.447% of prior year maximum ad valorem proceeds allowed by a majority
vote, net of the impact of the Tax Increment Districts). The adjustment of 100.447%reflects the
statewide per capita personal income increase for the prior year
• Option II: A two-thirds approval (5 of 7 votes) of the Commission is required to approve a
millage up to 8.8928(equivalent to a 10% increase in the ad valorem revenues above Option 1).
• Option III: A unanimous approval of the Commission or referendum is required to approve a
millage above 8.8928 up to the 10 mill cap
DETERMINING THE VOTED DEBT SERVICE MILLAGE LEVY(GENERAL OBLIGATION DEBT
SERVICE FUND)
The general obligation debt service payment for FY 2012/13 is approximately$5.9 million. Based
on the July 1, 2012 Certified Taxable Value from the Property Appraiser,these bonds would require
the levy of a voted debt service millage of 0.2568 mills.This represents a decrease of 0.0316 mills.
COMBINING THE OPERATING AND VOTED DEBT SERVICE MILLAGE LEVIES
Illustrated below is a comparison of the combined millage rates for the City of Miami Beach for FY
2010/11 (final)and FY 2012/13(preliminary)including RDA. It is recommended that in the General
Fund, 0.1083 mills of the total operating millage continue to be dedicated to renewal and
replacement, resulting in approximately$1.76 million in renewal and replacement funding.
%Inc/(Dec)
From ; From FY
FY 06/07 FY 11/12 ; F ! Inc/(D /12 06/07
City of Miami Beach Millage Rates;_ - _. .__ _ Y 12/13 Inc/(Dec) FY11.__.
Operatin 71920 6.0572i� 5.98261 -0.0746
Ca ital Renewal- Re lacement 0.1820 0.10831 0.1083 0.0000
Sub-total Operating Millage 7.3740 6.1655: 6.0909; -0.0_746 -1.2%; -17%
Debt Service ( 0.2990 0.2884 0.25684 -0.0316 - j
Tota l 7.6730 6.4539; 6.3477' -0.1062 -1.6%1 -17%
If these recommended millage rates are adopted, then the City of Miami Beach's total operating
millage will decrease by 0.0746 mills from the current year, and the voted debt service millage will
decrease by 0.0316 mills, for a combined decrease of 0.1062 mills.
CITY OF MIAMI BEACH MILLAGE LEVY IMPACT ON MIAMI BEACH PROPERTY OWNERS
Homesteaded Properties
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 2011, the CPI has been determined to be 3.2
percent and therefore, the increase is capped at 3% for increased values as of January 1, 2012.
Overall, based on an analysis of the homesteaded properties in the 2011 tax roll (the latest
available from the Miami-Dade County Property Appraiser at this time), the median value of
FY 2012/13 Final Millage Adoption
September 27, 2012
Page 6
homesteaded property in Miami Beach for 2012 (as of August 2011) was $119,461, and the
average $277,201. Applying the increase to the market value of all existing homesteaded
properties from the 2011 tax roll, and the 3 percent CPI adjustment, the impact of the millage rate
adjustment to homesteaded properties would be as shown in the following table.
Homesteaded Properties
FY 2011/12(as of
January 1 2011)* with 3%CPI
Median Average Median Average
Taxable Value $ 119,461 $ 277,201 $ 123,045 $ 285,517
City of Miami Beach
Taxes
Operating $ 737 $ 1,709 $ 749 $ 1,739
Voted Debt 34 71 32 73
Total Miami Beach $ 771 $ 1,780 $ 781 $ 1,812
$Change in Taxes
Operating $ 12 $ 30
Voted Debt (2) 2
Total Miami Beach $ 10 $ 32
*Source: Miami-Dade County Property Appraiser File as of 8/17/10
Non-Homesteaded Properties
It is anticipated that, overall commercial properties, would reflect a decline based on the overall
decline in the property values, although individual properties could vary significantly.
Historical Perspective
It is important to remember that in prior years, the City of Miami Beach significantly reduced tax
rates as property values increased. Between FY 1999/00 and FY 2009/10, property tax rates
declined approximately 2.8 mills. In FY 2007/08 alone, the property tax rate declined by
approximately 1.8 mills,with annual savings to the average homesteaded property of over$400. In
addition, in FY 2005/06 and FY 2006/07, the City funded $200 and $300 "homeowner dividends"
paid to homesteaded property owners in the City.
Totcml Combined Millczge
O Milla a Rate
rl
O
00
a �
ry Ln -
M -
N
rl
O
98 99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 11 12 13
Fiscal Years
FY 2012/13 Final Millage Adoption
September 27, 2012
Page 7
The combined millage rate overall remains approximately 2.4 mills lower than it was in FY 1999/00.
In addition, the millage rate is almost 1.3 mills lower than it was in FY 2006/07, when property
values were similar to the July 1, 2012 certified values. As a result,the proposed property tax levy
is lower in FY 2012/13 than it was in FY 2006/07.
Property Values and Tax Levy
0 250 30
= O
200
CD
150 20
100 10 N
50
E 0
0 F. 0
'07 '08 '09 10 '11 12 13
o Property Values Tax Levy including Debt
Property Values, Millage and Property Tax Levy
Millage Rates Tax Levy(in millions)
General Fund
Final/ Total
Taxable Revised (including S.
Property Taxable Total General Total Pointe, and
Values Value Citywide Fund/RDA including Renewal &
Budget Year (billions) (billions) Millage Millage Debt Replcmnt)
FY1997/98 $ 6.46 $ 6.40 9.2100 7.4990 $ 57.45 $ 46.78
FY1998/99 6.97 $ 6.87 8.9830 7.4990 $ 60.37 $ 44.66
FY1999/00 7.66 $ 7.54 8.6980 7.4990 $ 64.29 $ 47.36
FY2000/01 8.37 $ 8.22 8.5550 7.3990 $ 69.08 $ 49.75
FY2001/02 9.40 $ 9.22 8.3760 7.2990 $ 75.97 $ 54.37
FY2002/03 10.56 $ 10.41 8.3220 7.2990 $ 84.81 $ 61.05
FY2003/04 12.09 $ '11.85 8.1730 7.2990 $ 95.39 $ 68.17
FY2004/05 14.04 $ 13.86 8.1730 7.4250 $ 110.74 $ 79.38
FY2005/06 17.45 $ 17.15 8.0730 7.4810 $ 135.91 $ 111.69
FY2006/07 22.74 $ 22.26 7.6730 7.3740 $ 168.38 $ 140.31
FY2007/08 26.85 $ 26.14 5.8970 5.6555 $ 150.42 $ 125.33
FY2008/09 26.90 $ 25.89 5.8930 5.6555 $ 150.59 $ 125.94
FY2009/10 24.70 $ 23.24 5.9123 5.6555 $ 138.70 $ 115.73
FY2010/11 22.10 $ 20.97 6.5025 6.2155 $ 136.55 $ 112.14
FY2011/12 21.98 $ 20.76 6.4539 6.1655 1 $ 134.75 $ 111.29
FY2012/131 23.10 6.3477 6.0909 1 $ 139.13 $ 114.32
FY 2012/13 Final Millage Adoption
September 27, 2012
Page 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 Children's Trust, the South Florida Water Management
District and the Florida Inland Navigation District.
The countywide tax rate for Miami-Dade County is proposed to decrease from 4.8050 mills to
4.7035 mills;the library tax rate is proposed to decrease from 0. 1795 mills to 0.1725 mills;and the
debt service millage stayed the same at 0.2850.
The proposed tax rate for the Miami-Dade School District is 8.0040; 0.0010 mills less than the prior
year millage of 8.0050. The Children's Trust millage is maintained at 0.5 mills. The proposed tax
rate for the South Florida Water Management District is 0.4289, which is unchanged. The
proposed tax rate for the Florida Inland Navigation District is 0.0345;which is unchanged from the
FY 2011/12 millage rate.
A summary of the tax rate changes is provided in the following table.
Variance Variance
OVERLAPPING TAX MILLAGE FY 06/07 FY 11/12 FY 12/13 from 11/12 from 06/07
City of Miami Beach Millage Rates
Operating 7.1920 6.0572 5.9826 -0.0746 -1.2094
Capital Renewal & Replacement 0.1820 0.1083 0.1083 0.0000 -0.0737
Subtotal Operating Millage 7.3740 6.1655 6.0909 -0.0746 -1.2831
Voted Debt Service 0.2990 0.2884 0.2568 -0.0316 -0.0422
Tota 1 7.6730 6.45391 6.3477 -0.1062 -1.3253
Miami Dade County
Countywide 5.6150 4.8050 4.7035 -0.1015 -0.9115
Library 0.4860 0.1795 0.1725 -0.0070 -0.3135
Debt Service 0.2850 0.2850 0.2850 0.0000 0.0000
Subtotal 6.3860 5.2695 5.1610 -0.1085 -1.2250
School Board 8.1050 8.0050 8.0040 -0.0010 -0.1010
Children's Trust 0.4220 0.5000 0.5000 0.0000 0.0780
Other 0.73601 0.47081 0.4634 -0.0074 -0.2726
Tota 1 23.32201 20.69921 20.4761 -0.2231 -2.8459
With the Proposed millage rates for FY 2012/13,the Miami Beach portion of the FY 2012/13 tax bill
is approximately 31 percent of the total bill. Of note, even with the recently proposed millage
decreases by the County, the County millage is 1.2'mills less than their millage in FY 2006/07, as
compared to the City's proposed millage which is 1.3 mills less than the City millage in FY 2006/07.
Further, the School Board millage is only minimally below the FY 2006/07 millage rate,despite the
recently proposed decrease. The significant difference in the total overlapping millage rate is a
direct result of the City's effort to keep the millage rates as low as possible
FY 2012/13 Final Millage Adoption
September 27, 2012
Page 9
Impact of Combined Tax Rates of Overlapping Jurisdictions on Homesteaded Properties
Applying the proposed millage rates to the median and average January 1, 2011 taxable values of
$119,461 and $277,201, respectively, half of the homesteaded properties would pay less than
$2,522 for all taxing jurisdictions combined, while the average taxes generated would be
approximately $5,850 per homesteaded property. Of these taxing jurisdictions, the highest
component is the Miami-Dade School Board, at$984 for a median value property, and $2,284 for
an average valued property.
The following table provides examples of changes in property taxes for homesteaded properties as
a result of these declines in values, using the proposed tax rates and potential changes from 2011
values.
Impact on Homesteaded Properties Assuming Changes in Taxable Value
FY 2011/12(as of January 1 FY 2012/13
2011)* with 3%CPI
Median 7 Average Median Average
2010 Taxable Value $ 119,461 $ 277,201 $ 123,045 $ 285,517
City of Miami Beach
Operating $ 743 $ 1,723 $ 749 $ 1,739
Voted Debt $ 34 $ 80 $ 32 73
Total Miami Beach $ 777 $ 1,802 $ 781 $ 1,812
Miami Dade County $ 735 $ 1,707 $ 635 $ 1,473
Schools $ 985 $ 2,287 $ 984 $ 2,284
Other $ 138 $ 321 $ 119 $ 275
Total $ 2,635 $ 6,117 $ 2,519 $ 5,844
Change in Taxes
City of Miami Beach
Operating $ 6 $ 16
Voted Debt $ (2) $ (7)
Total Miami Beach $ 4 $ 10
Miami Dade County $ (100) $ (234)
Schools $ (1) $ (3)
Other $ (19) $ (46)
Total $ (116) $ (273)
As with the City of Miami Beach millage rates, impacts of the combined jurisdictional millage rates
for non-homesteaded properties will likely reflect declines in property values, although individual
properties may vary.
CONCLUSION
The Administration recommends adoption of the attached Resolution which sets both final
operating and debt service millage rates for FY 2012/13.
KGB:TF
I
,�. Miami.Heraad.com TIE'MIAMI HERALD
14KC- THURSDAY,SEPTEMBER 13,2012 1vE ..._....._._.............. ..._ .._..__... ;_.._.. ..,_ ......_
MIAMIBEACH
CITY OF'MIAMI BEACH
NOTICE OF A SPECIAL
CITY COMMISSION MEETING AND PUBLIC HEARINGS
NOTICE IS HEREBY given that a Special Commission Meeting regarding the Second Public Hearings to consider the adoption of the Millage
Rate and Budget for FY 2012/2013 will be held by the Cify Commission of the City of Miami Beach,Florida,on Thursday,September 27,
2012,commencing at 5:00 p.m.,in the Commission Chambers,3rd Floor,City Hall,1700 Convention Center Drive,Miami Beach,Florida.
5:01 p.m.
THE SECOND PUBLIC HEARING TO CONSIDER THE ADOPTION OF THE MILLAGE RATES AND BUDGETS FOR FISCAL YEAR (FY)
2012/2013 FOR THE CITY OF MIAMI BEACH.
5:02 p.m.
THE SECOND PUBLIC HEARING TO CONSIDER THE ADOPTION OF THE OPERATING MILLAGE RATE AND BUDGET FOR FISCAL YEAR
(FY)2012/2013 FOR THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT.
In addition,the City Commission may be discussing other City related business at this meeting.
Inquiries concerning this meeting should be directed to the Office of Budget and Performance Improvement at 305.673.7510.
INTERESTED PARTIES are invited to appear at this meeting,or be represented by an agent,or to express their views in writing addressed
to the City Commission,c/o the City Clerk,1700 Convention Center Drive,1st Floor,City Hall;Miami Beach,Florida 33139.Copies of these
items are available for public inspection during normal business hours in the City Clerk's Office,1700 Convention Center Drive, 1st Floor,
City Hall,Miami Beach,Florida 33139.
Rafael E.Granado,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.This notice does not
constitute consent by the City for the introduction or admission of otherwise inadmissible or irrelevant evidence, nor does it authorize
challenges or appeals not otherwise allowed by law.
To request this material in accessible format, sign language interpreters, information on access for persons with-disabilities and/or any
accommodation to review any document or participate in any City-sponsored proceeding, please contact us five days in advance at
305.673.7411 (voice)or TTY users may also call the Florida Relay Service at 711.
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