2015-29134 Reso RESOLUTION NO. 2015-29134
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ADOPTING: 1) THE TENTATIVE AD VALOREM
MILLAGE OF 5.7092 MILLS FOR GENERAL OPERATING PURPOSES,
WHICH IS TWELVE AND NINE-TENTHS PERCENT (12.9%) MORE THAN
THE "ROLLED-BACK" RATE OF 5.0584 MILLS; AND 2) THE DEBT
SERVICE MILLAGE RATE OF 0.2031 MILLS; FURTHER SETTING THE
- SECOND PUBLIC HEARING TO CONSIDER THE MILLAGE RATE FOR
FISCAL YEAR (FY) 2015/16, ON WEDNESDAY, SEPTEMBER 30, 2015 AT
5:01 P.M.
WHEREAS, on July 31, 2015, the City Commission, following a duly noticed public
hearing, adopted Resolution No. 2015-29100, which set the proposed general operating millage
rates at 5.7092 mills (excluding debt service) for general operating purposes, a reduction of
0.0850 from the FY 2014/15 general operating millage rate; and 0.2031 mills for debt service, a
reduction of 0.0264 mills from the FY 2014/15 debt service rate; and
WHEREAS, Section 200.065, Florida Statutes, requires that at the conclusion of the first
public hearing on the City's proposed tax rate and budget, the City Commission: 1) adopt a
tentative ad valorem millage rate for FY 2015/16 operating purposes; and 2) the required Debt
Service millage rate; this is accomplished by adopting a Resolution that includes the percentage
increase or decrease over the "rolled-back" rate; and
WHEREAS, at this time, the Administration recommends that the City Commission set the
second and final public hearing to consider the aforestated millage rates for FY 2015/16.
NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, as follows:
(1) Pursuant to Section 200.065, Florida Statutes, there is hereby levied a tax for FY
2015/16, 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 5.7092 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 twelve and nine-tenths percent (12.9%) more
than the "Rolled-back" rate of 5.0584 mills.
(b) For the purpose of providing payment on the principal and interest
portions of the General Obligation Bond Debt outstanding and
miscellaneous debt service expenditures, the rate assigned amounts to
0.2031 mills.
(2)The tentative adopted millage rates for the City of Miami Beach, Florida for FY 2015/16
are subject to a second and final public hearing, herein set for and to be held at 5:01 p.m.,
Wednesday, September 30, 2015, in the City Commission Chambers, City Hall, 1700 Convention
Center Drive, Miami Beach, Florida.
PASSED and ADOPTED this 10th day of September, 2015.
J
-vine, Mayor
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COMMISSION ITEM SUMMARY
Condensed Title:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,
FLORIDA,ADOPTING: 1)THE TENTATIVE AD VALOREM MILLAGE OF 5.7092 MILLS FOR GENERAL
OPERATING PURPOSES,WHICH IS TWELVE AND NINE-TENTHS PERCENT(12.9%)MORE THAN
THE "ROLLED-BACK" RATE OF 5.0584 MILLS; AND 2)THE DEBT SERVICE MILLAGE RATE OF
0.2031 MILLS; FURTHER SETTING THE SECOND PUBLIC HEARING TO CONSIDER THE MILLAGE
RATE FOR FISCAL YEAR(FY)2015/16, ON WEDNESDAY, SEPTEMBER 30, 2015 AT 5:01 P.M.
Key Intended Outcome Supported:
Ensure expenditure trends are sustainable over the long term
Supporting Data(Surveys, Environmental Scan, etc.):
In the 2014 Community Survey, both residents and businesses reported the following area for the City
related to value for taxes paid:
• Percentage of residents rating the Overall Value of City services for tax dollars paid as excellent or
good (Residents: 58%; Businesses 54%)
Item Summary/Recommendation:
The Administration recommending a total combined millage rate for the City of Miami Beach of 5.9123,
which represents a decrease of 0.1114 mills. This amount meets the remaining millaqe rate qoal to lower
the millage rate to the level in FY 2009/10 as property values have increased over time. In addition, the
proposed millaqe rate does not result in a property tax increase to median or average property owners that
qualify for the homestead exemption and the Save Our Homes cap.
The tentatively adopted combined millage rate of 5.9123 mills is 0.1114 mills less than the 6.0237
combined millage rate for FY 2014/15. The tentatively adopted operating millage of 5.7092 mills for FY
2015/16 is 0.6508 mills more than the rolled-back rate of 5.0584,and thus,the City is required to publish a
Notice of Tax Increase. The proposed operating millage rate of 5.7092 requires a majority approval(4 of 7
votes)of the Commission.
Advisory Board Recommendation:
Finance&Citywide Projects Committee meetings on June 3rd, July 1st, and July 17th, 2015
Financial Information:
Source of Amount Account
Funds: 1
1= (4111 2
BPI Total
Financial Impact Summary: Including the proposed millage rate for FY 2015/16, the City has
decreased the millage by 0.5902 mills in the last five years and combined millage rates today remain more
than 2.8 mills lower, or 33 percent, than in FY 1999/00 and approximately 1.7 mills lower than in FY
2006/07. As a result, the proposed property tax levy is only$4 million more in FY 2015/16 than it was in
FY 2006/07.
City Clerk's Office Legislative Tracking:
Sign-Offs:
B,• • . ,j • t Director Assistant Cit Mana•er , Cit Mana•er
-`--
MIAMIBEACH AGENDA STEM R?A I
DATE 9I
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1915. •.2015
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City of Miami Beach, 1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Philip Levine and Members of he City Corn ission
FROM: Jimmy L. Morales, City Manager
DATE: September 10, 2015
SUBJECT: A RESOLUTION OF THE MAYOR A D CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, ADOPTING: 1) HE TENTATIVE AD VALOREM MILLAGE OF
5.7092 MILLS FOR GENERAL OPERATING PURPOSES, WHICH IS TWELVE AND
NINE-TENTHS PERCENT (12.9%) MORE THAN THE "ROLLED-BACK" RATE OF
5.0584 MILLS; AND 2) THE DEBT SERVICE MILLAGE RATE OF 0.2031 MILLS;
FURTHER SETTING THE SECOND PUBLIC HEARING TO CONSIDER THE MILLAGE
RATE FOR FISCAL YEAR(FY)2015/16,ON WEDNESDAY,SEPTEMBER 30,2015 AT
5:01 P. M.
ADMINISTRATION RECOMMENDATION
The Administration recommends that the City Commission adopt the attached Resolution which
sets the following:
1) Proposed Millage Rates for FY 2015/16:
General Operating 5.6009 mills (0.0850 decrease from last year)
Capital Renewal & Replacement 0.1083 mills (same as last year)
Sub-Total Operating Millage 5.7092 mills (0.0850 decrease from last year)
Voted Debt Service 0.2031 mills (0.0264 decrease from last year)
Total 5.9123 mills (0.1114 decrease from last year)
2) The tentatively adopted combined millage rate of 5.9123 mills is 0.1114 mills less than the
6.0237 combined millage rate for FY 2014/15. The tentatively adopted operating millage of
5.7092 mills for FY 2015/16 is 0.6508 mills more than the rolled-back rate of 5.0584, and
thus, the City is required to publish a Notice of Tax Increase.
3) The second public hearing to consider the final millage rates and budgets for FY 2015/16
shall be on Wednesday, September 30, 2015 at 5:01 P.M., in the City Commission
Chambers, City Hall, 1700 Convention Center Drive.
The "Rolled-Back" millage rate for FY 2015/16 is the millage rate required to produce the same
level of property tax revenues in the General Fund in FY 2015/16 as anticipated to be received in
FY 2014/15. It is important to note, that the January 1, 2014, tax roll Citywide declined by almost
$832.6 million (3.1%) between the July 1, 2014 valuation and the July 1, 2015 valuation due to
appeals, adjustments, etc,which is part of the reason the FY 2015/16"rolled-back rate"is 0.7358
FY 2015/16 Proposed Millage
September 10, 2015
Page 2
mills lower than the FY 2014/15 current millage rate and lower than it would be if the rollback 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 in value by
approximately$550.9 million during the same period of time.
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 2015/16 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 2015/16.Also included, are budgets for
the Enterprise, Internal Service, and Special Revenue Funds. This is accomplished by
adopting a companion Resolution. (See accompanying City Budget Agenda Item).
Both the millage and budget Resolutions must be adopted again after a second and final public
hearing.
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 5.9123 to 6.5025, an increase of 0.5902 mills. The goal of the Commission has
been to bring them back to that level as property values increase over time. It should be
remembered that between FY 2009/10 and FY 2010/11 values declined by$2.6 billion driving the
need for an increase in the millage.
In FY 2011/12 the City took its first step in that direction with a reduction in the millage rate of
0.0486 mills.The millage rate for FY 2012/13 reduced the millage by an additional 0.1062 mills. In
the FY 2013/14 budget, the millage rate was reduced 0.2314 mills and in the FY 2014/15 budget
the millage rate was reduced 0.0926 mills. Over four years,this reduction represented 81 percent
of the goal to get back to a millage rate of 5.9123. The remaining goal for millage reduction is
0.1114.
For FY 2015/16, the Administration proposes a total combined millage rate for the City of Miami
Beach of 5.9123,which represents a decrease of 0.1114 mills. This amount meets the remaining
millaqe rate qoal to lower the millage rate to the level in FY 2009/10 as property values have
increased over time. In addition, the proposed millaqe rate does not result in a property tax
increase to median or average_property owners that qualify for the homestead exemption and the
Save Our Homes cap.
FY 2015/16 Proposed Millage
September 10, 2015
Page 3
The total proposed operating millage includes a general operating millage rate of 5.6009 which is a
decrease of 0.0850 from 5.6859 in FY 2014/15 and a General Fund Capital Renewal and
Replacement millage of 0.1083,which is proposed to remain flat. The proposed voted debt service
millage rate is adjusted from 0.2295 to 0.2031, a decrease of 0.0264 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 adjustment of 0.56 mills in the operating tax rate in FY 2010/11,
City of Miami Beach proposed combined millage rates today remain more than 2.7857 mills lower
than in FY 1999/00 (33 percent), and 1.6493 mills lower than 2006/07 (22 percent).
ANALYSIS OF PROPERTY VALUES IN MIAMI BEACH
On July 1, 2015, the City received the "2015 Certification of Taxable Value" from the Property
Appraiser's Office stating that the taxable value for the City of Miami Beach is$30.7 billion including
$267.0 million in new construction. The preliminary 2015 value represents an increase of$3.6
billion or 13.3 percent more than the July 1, 2014, Certification of Taxable Value of$27.1 billion.
The comparative assessed values for the Miami Beach Redevelopment Agency City Center
redevelopment district increased from $4.2 billion to $4.8 billion an increase of$635 million or a
15.2 percent increase over 2014 certified values. Citywide values excluding City Center increased
from $22.9 billion to $25.9 billion, an increase of$3.0 billion or 12.9 percent. Values outside the
City Center area determine General Fund revenues.
COMPARATIVE ASSESSED VALUES
Jan. 1, 2015
Value (in. Change from 2014
Jan. 1 2014 Value (in billions) billions) Value (Budget)
As of July 1,2014 Revised Value Change in As oFJuly 1,2015
(For 2014/15 (For 2014/15 2014 (For 2015/16 $
Budget) Projection) Values %Chg. Budget) (in billions) %Chg
Total Citywide $ 27.1038 $ 26.2712 (0.8326) -3.1% $ 30.6979 $ 3.5941 13.3%
-
RDA-City Ctr $ 4.1867 $ 3.9049 $ (0.2818) -6.7% $ 4.8216 $ 0.6349 15.2%
Citywide Net of $ 22.9171 $ 22.3663 $ (0.5508) -2.4% $ 25.8763 $ 2.9592 12.9%
City Center
FY 2015/16 Proposed Millage
September 10, 2015
Page 4
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,the value for each mill is determined by the 2015 Certification
of Taxable Value and has been set at$30.7 million. Florida Statutes permit a discount of up to five
percent for early payment discounts,delinquencies,etc. Therefore,the 95 percent value of the mill
is$29.1 million. Net of Center City RDA tax increment available to the General Fund,the value of
one mill at 95 percent is $25.1 million.
IMPACTS OF CHANGES IN PROPERTY VALUES
For FY 2015/16,the proposed operating millage rate for general City operations is 5.7092,which is
0.0850 less than in FY 2014/15. Based on the July 1,2015, Certification of Taxable Value,5.7092
mills would generate approximately $143,162,000 in general tax revenues, an increase of
$15,403,000 over FY 2014/15 budgeted property tax revenues Citywide (General Fund and City
Center RDA).
Further,the January 1,2014,tax roll Citywide declined by $832.6 million between the July 1,2014
valuation and the July 1, 2015 valuation due to appeals, adjustments, etc., which is part of the
reason that the FY 2015/16 "rolled-back rate" is significantly less than the FY 2014/15 current
millage rate. The value of the area outside of City Center RDA declined by almost$550.9 million.
STATE LEGISLATED OPERATING MILLAGE REQUIREMENTS
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:
• Option I:A majority of the approval of the Commission Millage is required to approve a millage
up to 6.6112(equivalent to 1.96 percent increase in property tax revenues). The 1.96 percent
increase is the state per capita personal income gain for the prior calendar year.
• Option II: A two-thirds.approval (5 of 7 votes) of the Commission is required to approve a
millage up to 7.2723(equivalent to a 10%increase in the ad valorem revenues above Option I).
• Option Ill: A unanimous approval of the Commission or referendum is required to approve a
millage above 7.2723 up to the 10 mill cap
The proposed operating millage rate of 5.7092 therefore requires a majority approval(4 of 7 votes)
of the Commission.
DETERMINING THE VOTED DEBT SERVICE MILLAGE LEVY
The general obligation debt service payment for FY 2015/16 is approximately$5.9 million. Based
on the July 1,2015 Certified Taxable Value from the Property Appraiser,these bonds would require
the levy of a voted debt service millage of 0.2031 mills.This represents a decrease of 0.0264 mills.
FY 2015/16 Proposed Millage
September 10, 2015
Page 5
COMBINING THE OPERATING AND VOTED DEBT SERVICE MILLAGE LEVY
At the July 31, 2015 Commission meeting,the Commission set the general operating millage rate
at 5.6009, which is a decrease of 0.0850 from 5.6859 in FY 2014/15; a General Fund Capital
Renewal and Replacement millage of 0.1083, which is proposed to remain flat; and a proposed
voted debt service millage rate is adjusted from 0.2295 to 0.2031, a decrease of 0.0264 mills.
Illustrated below is a comparison of the combined millage rates and ad valorem revenues to the
City of Miami Beach for FY 2014/15 and FY 2015/16 (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 $2.7 million in renewal and
replacement funding.
% Inc/(Dec)
From From
City of Miami Beach Millage Rates
FY 06/07 FY 14/15 ; FY 15/16 Inc/(Dec) FY14/15 FY 06/07
Operating 7.1920 5.6859 5.6009 -0.0850
Capital Renewal& Replacement 0.1820 0.1083 0.1083 0.0000
Sub-total Operating Millage 7.3740 5.7942; 5.7092: -0.0850 -1.5% -22.6%
Debt Service 0.2990 0.2295 0.2031 -0.0264 -11.5% -32.1%
Total 7.6730 6.0237, 5.9123 -0.1114 -1.8% -22.9%
IMPACT OF PROPOSED MILLAGE ON 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 2014, the CPI has been determined to be 0.8
percent and therefore,the increase is capped at 0.8%for increased values as of January 1,2015.
Overall, based on the homesteaded properties in the January 1, 2014 homestead values as of July
1, 2014 valuation, the median value of homesteaded property in Miami Beach for 2014 was
$143,680, and the average $351,189. Applying the increase to the market value of all existing
homesteaded properties from the 2014 tax roll, and the 0.8 percent CPI adjustment, the impact of
the millage rate adjustment to homesteaded properties would be as shown in the following table.
Homesteaded Properties
FY 2015/16
FY 2014115 with 0.8%CPI
Median I Average Median I Average
2014 Preliminary Taxable Value $ 143,680 $ 351,189 $ 144,829 $ 353,999
City of Miami Beach
Operating $ 833 $ 2,035 $ 827. $ 2,021
Voted Debt 33 81 29 72
Total Miami Beach $ 866 $ 2,116 $ 856'$ 2,093
$Change in Taxes
Operating $ (6) $ (14)
Voted Debt (4) (9)
Total Miami Beach $ (10) $ (23)
Source:Miami-Dade County Property Appraiser's-2014-average-median-homestead-residential-values file
FY 2015/16 Proposed Millage
September 10, 2015
Page 6
Non-Homesteaded Properties
The annual increase in market value of a non-homestead property is capped at 10 percent(does
not apply to school millages). The city-wide average increase in property values is 13.3 percent. -
The property value of individual properties may increase up to, but not more than 10 percent
(excluding the school millage portion of the property tax bill). However, an individual property
owner may see a higher than 10 percent increase if there is a change in ownership of a capped
Y 9 P 9 P PP
property resulting in a reset of the cap. Another potential factor, if applicable,would be the value of
new construction which could contribute to a property value increase of higher than 10 percent.
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.
Property Value, Millage and Property Tax Levy
Millage Rates Tax Levy(in millions)
General
Fund Total
Final/Revise Total (including S.
Taxable d Taxable Combined Gnerol Pointe,and
Taxable Property Values Values Citywide Fund/RD Total Tax Levy Renewal&
Values Chart (billions) (billions) Millage A Millage including Debt Replacement)
FY 1997/98 $ 6.46 $ 6.40 9.2100 7.4990 $ 57.45 $ 46.78
FY 1998/99 $ 6.97 $ 6.87 8.9830 7.4990 $ 60.37 $ 44.66
FY 1999/00 $ 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 $ 20.75 6.4539 6.1655 $ 134.75 $ 111.29
FY2012/13 $ 23.07 $ 22.02- 6.3477 6.0909 $ 139.10 $ 114.32
FY2013/14 $ 24.66 $ 23.64 6.1163 5.8634 $ 143.26 $ 117.411
FY2014/15 $ 27.10 $ 26.27 6.0237 5.7942 $ 155.101 $ 127.76`
FY2015/16 $ 30.70 * 5.9123 5.7092 $ 172.39 $ 143.16'
Further, although the City increased the operating tax rate by 0.56 mills in FY 2010/11, the City's
proposed combined millage rate is now the same as in FY 2009/10 and rate remains approximately
2.8 mills lower or 33%,than it was in FY 1999/00.As a result,the proposed property tax levy is only
$4 million more in FY 2015/16 than it was in FY 2006/07.
FY 2015/16 Proposed Millage
September 10, 2015
Page 7
TOTAL COMBINED MILLAGE
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Fiscal Years
Property Values and Tax Levy
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t I Property Values — -Tax Levy including Debt
Overlapping Jurisdictional Operating and Debt Service Millages
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,Okeechobee Basin, Everglades Project,and the Florida Inland Navigational District.These
taxing authorities represent 71 percent of a Miami Beach property owner's tax bill.
The countywide tax rate for Miami-Dade County decreased by 0.0021 mills to 4.6669;the library tax
rate is flat at 0.2840 mills; and the debt service millage is the same at 0.4500 mills.
The tax rate for the Miami-Dade School District decreased from 7.9740 to 7.6120 mills. The
Children's Trust millage is maintained at 0.5000 mills. As a whole, the millage rates for the South
Florida Water Management District, Okeechobee Basin, Everglades Project, and Florida Inland
Navigational District decreased from 0.4187 mills to 0.3896 mills.
FY 2015/16 Proposed Millage
September 10, 2015
Page 8
With the proposed rates for FY 2015/16,the Miami Beach portion of the tax bill is approximately 30
percent of the total bill. Of note, the County millage is 0.9851 mills less than their millage in FY
2006/07, as compared to the City's millage which is 1.7607 mills less than the City millage in FY
2006/07. Further, the School Board millage is only 0.4930 below the FY 2006/07 millage rate.
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. A summary of the tax rate changes is provided in the
following table.
Variance Variance %of
OVERLAPPING TAX MILLAGE FY 06/07 FY 14/15 FY 15/16 from from FY 15/16
FY 14/15 FY 06/07 Total
City of Miami Beach
Operating 7.1920 5.6859 5.6009 -0.0850 -1.5911
Capital Renewal& Replacement 0.1820 0.1083 0.1083 0.0000 -0.0737
Subtotal Operating Millage 7.3740 5.7942 5.7092 -0.0850 -1.6648
Voted Debt Service 0.2990 0.2295 0.2031 -0.0264 -0.0959
Total 7.6730 6.0237 5.9123 -0.1114 -1.7607 30%
Miami Dade County
Countywide 5.6150 4.6690 4.6669 -0.0021 -0.9481
Library 0.4860 0.2840 0.2840 0.0000 -0.2020
Debt Service 0.2850 0.4500 0.4500 0.0000 0.1650
Subtotal 6.3860 5.4030 5.4009 -0.0021 -0.9851 27%
School Board 8.1050 7.9740 7.6120 -0.3620 -0.4930 38%
Children's Trust 0.4220 0.5000 0.5000 0.0000 0.0780 3%
Other 0.7360 0.4187 0.3896 -0.0291 -0.3464 2%
Total 23.3220 20.3194 19.8148 -0.5046 -3.5072 100%
Impact of Combined Tax Rates of Overlapping Jurisdictions on Homesteaded Properties
The median and average January 1,2014 taxable values of$143,680 and$351,189, respectively,
will increase by 0.8%CPI in FY 2015/16 due to the Save Our Homes Cap which only allows taxable
values to increase by 3.0% or CPI, whichever is lower.
Applying the proposed combined millage rates to the median and average taxable values results in
a decrease of$51 for the median and a$121 decrease for the average. These decreases include
a $10 decrease in property taxes for the median and a $23 decrease for the average from the
reduction in millage in the City of Miami Beach's portion of the property tax bill.
Median properties would pay approximately$2,869 for all taxing jurisdictions combined,while the
average taxes generated would be approximately$7,015 per homesteaded property. Of these
taxing jurisdictions, the highest component is the Miami-Dade School Board, at $1,102 for a
median value property, and $2,695 for an average valued property.
The following table provides examples of changes in property taxes for homesteaded properties
using the proposed tax rates and potential changes from 2014 values.
FY 2015/16 Proposed Millage
September 10, 2015
Page 9
Impact on Homesteaded Properties Assuming
Changes in-Taxable.Value from January 1, 2015
FY 2015/16
FY 2014/15 with 0.8%CPI
Median I Average Median I Average
2013 Preliminary Taxable Value $ 143,680 $ 351,189 $ 144,829 $ 353,999
City of Miami Beach
Operating $ 833 $ 2,035 $ 827 $ 2,021
Voted Debt 33 81 29 72
Total Miami Beach $ 866 $ 2,116 $ 856 $ 2,093
Miami Dade County 776 1,897 782 1,912
Schools 1,146 2,800 1,102 2,695
Other 132 323 129 315
Total $ 2,920 $ 7,136 $ 2,869 $ 7,015
Change in Taxes
City of Miami Beach
Operating $ (6) $ (14)
Voted Debt (4) (9)
Total Miami Beach $ (10) $ (23)
Miami Dade County 6 15
Schools (44) (105)
Other (3) (8)
Total $ (51) $ (121)
As with the City of Miami Beach millage rates, impacts of the combined jurisdictional millage rates
for non-homesteaded properties are based on the individual property values.
SECOND PUBLIC HEARING
second public hearing on the tentatively adopted millage rate and budget for FY 2015/16 must
The s p 9
P 9 Y 9
be advertised no later than 15 days after the first public hearing. It is recommended that the second
public hearing be set for Wednesday, September 30, 2015 at 5:01 P.M., 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 2015/16 and establishes a second public hearing to
be held on Wednesday, September 30, 2015, at 5:01 P.M.
JLM/JW
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