96-22079 RESO
RESOLUTION NO.
96-22079
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, SETTING THE
PROPOSED MILLAGE RATES FOR FY 1996/97, THE
CALCULATED ROLLED-BACK RATE, AND THE DATE,
TIME, AND PLACE OF THE FIRST PUBLIC HEARING;
FURTHER AUTHORIZING THE CITY MANAGER TO
TRANSMIT THIS INFORMATION TO THE DADE COUNTY
PROPERTY APPRAISER IN THE FORM REQUIRED BY
SECTION 200.065, FLORIDA STATUTES
WHEREAS, Section 200.065, Florida Statutes, has specified the method by which
municipalities may fix the millage rate and adopt an annual budget; and
WHEREAS, the City of Miami Beach is required to advise the Dade County Property
Appraiser of the Proposed Millage Rate, the Rolled-Back Rate, and the date, time, and Jlace of the
first public hearing.
NOW, THEREFORE BE IT DULY RESOLVED BY THE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that tht:: following
recommendations of the Administration be and are hereby ratified for transmittal to the Dade County
Property Appraiser, as specified in Section 200.065, Florida Statutes:
1) Proposed Millage Rates for FY 1996/97
General Operating
Debt Service
7.673 mills
1.879 mills
2)
Rolled-Back Rate
7.090 mills
3) The first public hearing on the proposed millage rate and the tentative budget for
Fiscal Year 1996/97 shall be held on Thursday, September 12, 1996 at 5:01 P.M., in
the City Commission Chambers, City Hall, 1700 Convention Center Drive, Miami
Beach, Florida.
PASSED and ADOPTED, this 17th day of July, 1996.
MAYOR
ATTEST:
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CITY CLERK
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By /It 1fttM--.
Date 1l]/1b __.
CITY OF
MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
-
COMMISSION MEMORANDUM NO. ~
TO:
Mayor Seymour Gelber and
Members of the City Commission
DATE: July 17, 1996
FROM:
Jose Garcia_pedrolia
City Manager .
A RESOLUTION G 1) THE PROPOSED OPERATING MILLAGE RATE; 2) THE
REQUIRED DEBT SERVICE MILLAGE RATE; 3) THE CALCULATED ROLI.ED BACK
RATE; AND, 4) THE DATE, TIME AND PLACE OF THE FIRST PUBLIC HE ~RING TO
CONSIDER THE MILLAGE RATES AND BUDGETS FOR FISCAL YEAR 1995/97
SUBJECT:
ADMINISTRATION 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 Dade County
Property Appraiser:
1) Proposed Millage Rates for FY 1996/97:
General Operating
Debt Service
7.944 mills
1.879 mills
2) Rolled Back Rate (Truth in Millage)
7.090 mills
3) The first public hearing to consider the proposed millage rates and tentative budgets for FY
1996/97 shall be at 5:01p.m., Thursday, September 12, 1996 in the City Commission
Chambers, City Hall, 1700 Convention Center Drive, Miami Beach, Florida.
DECISION-MAKING PROCESS
The budget development process includes partIcIpation from within and from outside the
organization. The Budget Advisory Committee (BAC) hosted a citizen forum and attended a joint
meeting of Audit/BAC/Finance and Capital Improvement Committees. The administration
conducted a Commission workshop. All of these activities were designed to elevate both citizen and
Commission knowledge and involvement in the budget process prior to the release of the FY
1996/97 Proposed Budget on July 12, 1996. The results of this process enabled the Administration
to ascertain public concern for specific areas, and receive Commission directives to be addressed in
the operating budget during the upcoming fiscal year. As evidenced in the FY 1996/97 Proposed
Budget, increased services benefiting four quality-of-life areas have been recommended for
Recreation, Police, Code Compliance/Building Inspections, and FilmlFashion/Special Events.
AGENDA ITEM
R.~ F
DATE__~
FY 1996/97 Proposed Millage Rate
July 17, 1996
Page - 2 -
Maintaining the current service level into FY 1996/97 would translate into a total operating budget
of $98,314,449, which is $4,087,873 or 4.3% more than the estimated current year-er:d operating
expenditures of $94,226,576, and supported by a millage of7.673. The addition of$I,720,670 in
increased services results in a total FY 1996/97 operating budget of $100,035,119, which is
$5,808,543, or 6.2% more than the current year-end operating expenditures, and supported by a
millage of 7.944.
STATUTORY REQUIREMENTS
FS200.065, entitled "Method of Fixing Millage" establishes specific guidelines that must be used
by all local government entities in setting millage (property tax) rates. Under the statl.te, the City
is required, within 35 days of receipt of the "Certification of Taxable Value" (received Jdy 1, 1996),
to advise the Dade County Property Appraiser of the proposed millage rates, the ca1cul ated rolled-
back rate and the date, time, and place of the first public hearing to consider the propo sed millage
rates and tentative budgets for Fiscal Year 1996/97. The required Debt Service milla!:e rate must
also be set at the same time.
After setting the proposed operating millage rate, the Commission may, at any time prior to
the final adoption, lower the rates by adjusting priorities. Increasing the millage rae may only
be accomplished by an expensive mailing and advertising process to each and every pro pertyowner
on Miami Beach.
ANAL YSIS OF PROPERTY VALUES IN MIAMI BEACH
On July 1, 1996, the City received the" 1996 Certification of Taxable Value" from the Property
Appraiser's Office stating that the taxable value for the City of Miami Beach is $6,ll4,562,295,
including $137,387,109 in new construction, which is the single largest increase this City has
experienced in its recent history.
The preliminary 1996 value represents an increase
of 8.2 percent over 1995's final value of
$5,651,435,599. Alternately, the increase is 6.5 :::
percent over 1995's preliminary value of 0 $50
$5,741,086,882. The difference of $89,651,283 ~ $40 .
m $3.0
between 1995's preliminary and final values $20
represents the equalization loss of 1.6 percent due to $' .0
$0.0
appeals.
Property Value Trends
1 986 to 1 996
$ 7.0
. $6.0
18118 19117 1lUI 11111 ,UO "11 18.2 1UJ lII!H 1995 11116
as of January 1 st, 19xx
I D ~~~~':iury 0 ~~nl:~ . ~::.'I;UliO~
, .J
$5.0
$4.0
$3.0
$2.0
$1.0
$0.0
The comparative assessed values for the Miami
Beach Redevelopment Agency South Pointe redevelopment district increased by $48 J 81,188 or
15.1 percent from $320,238,105 to $368,619,293; whereas, the City Center redevelopment district
increased marginally by only $5,664,928 or 1.1 percent from $491,677,581 to $497,3~2,509.
FY 1996/97 Proposed Millage Rate
July 17, 1996
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 1996 Certification of Taxable
Value and has been set at $6,114,562. 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
four percent. Therefore, the 96 percent value of the mill is $5,869,980.
Preliminary budget estimates reveal that the current millage rate of 7.499 mills will not l:e sufficient
to fund the current service level as it presently exists into the next year. Thus, an incremmt of 0.174
mills will be necessary to be added to the existing 7.499 mills to produce a millage rare of7.673,
which has been calculated to be sufficient to support the current service level operatini~ budget of
$98,314,449. Twelve selected service enhancements, of which four benefit "quality 0 f life" have
been recommended for funding, and will require an increment of 0.271 mills to be added 10 the 7.673
millage to produce a millage rate of 7.944 mills, which has been determined to be suffici ent to fund
both the current and enhanced service level budget of$100,035,119.
The proposed millage rate of 7.944 mills will generate ad-valorem tax revenues of$46,631,120 to
the General Fund. This amount is $5,300,609 more than the prior year levy of $41,330,511,
reflecting a 12.8% increase.
DETERMINING THE DEBT-SERVICE MILLAGE LEVY
The debt-service payment for FY 1996/97 is $11,028,582 and requires a tax rate of 1.879 mills. This
rate is 0.017 mills, or less than one percent greater than the FY 1995/96 rate of 1.862 miLs. Had the
City opted not to issue the $15 Million Parks and Recreation Bond issue, then the propm,ed millage
rate would have been 1.714, a reduction of 0.148 mills, or 8.6% from the current 1.862 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 1995/96 (final) and FY 1996/97 (preliminary).
Tax Rate Tax Levy
FY 95/96 FY 96/97 Inc/(Dec) FY 95/96 FY 96/97 Inc/(Cec)
General Operating 7.499 7.944 0.445 $41,330,511 $46,631,120 $5,3C 0,609
Debt Service 1.862 1.879 0.017 10.368.286 11.028.582 ~0.296
TOTAL ~ 9.823 0.462 $51,698,797 $57,659,702 $5,9€0,905
If these recommended millage rates are tentatively adopted, then the combined tax rate will increase
by 0.462 mills, or 4.9% over the current year. The operating millage will increase by 0.445 mills,
or 5.9%; and debt-service millage will increase by 0.017 mills, or less than one percent.
FY 1996/97 Proposed Millage Rate
July 17, 1996
Page - 4 -
COMBINING JURISDICTIONAL OPERATING AND DEBT-SERVICE MILLAGE
LEVIES
City of Miami Beach propertyowners must also pay property taxes to Metropolitan Dade County,
the Dade County School Board, the South Florida Water Management District, and the Florida
Inland Navigation District. In FY 92/93, the Miami Beach portion of the total tax bill was 37.6
percent; this amount decreased to 32.4 percent in FY 1995/96. The recommended millage rates
for FY 1996/97 will increase the Miami Beach portion of the tax bill to 34.5 percenr based on
tax rates announced by other jurisdictions.
Revised FY 1996/97 tax rates will be considered by Dade County on September 4, ] 996. The
countywide tax rate will decrease by 0.354 mills from 6.828 to 6.474 mills, as will its d~bt service
decrease by 0.006 mills from 0.789 to 0.783 mills. An increase for the Library District has been
announced for 0.009 mills from 0.329 to 0.338 mills. While it is not possible to determine the exact
amount returned in additional services, credit must be given to Dade County for returning
$2,981,931 during FY 1995/96 in tax increment funds for the Redevelopment Agency ,md its two
tax increment districts.
The Dade County School Board is scheduled to discuss its proposed tax rate on July 29th. They
have announced an increase of 0.018 mills from 10.390 to 10.408 mills. It must be not(:d that this
value is subject to change after the State of Florida reviews the counties tax rolls and determines the
"local required effort" by Dade County.
Illustrated below are the current and proposed tax rates for the multiple taxing authoritil~s.
Adopted Proposed % %01
Taxing Jurisdiction FY 95/96 FY 96/97 Incf(Dec) Change Tota
Miami Beach 3<
General Operating 7.499 7.944 0.445 5.9
Debt Service 1.862 1.879 0.017 0.009
Dade County 21
Countywide Operating 6.828 6.474 (0.354) (5.5)
Library 0.329 0.338 0.009 2.7
Debt Service 0.789 0.783 (0.006) (0.008)
School Board 10.390 10.408 0.018 0.002 31
Other 0.687 0.687 0.000 0.0
Totals 28.384 28.513 0.129 0.005 101
1.5
>'6
>'5
!.4
l.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 lesser of the consumer price index (CPT) or three
percent (3%), whichever is less. For 1996, the CPI has been determined to be 2.5 percent and
thereby establishes the limit for increased values, as of January 1, 1996. This limitation is in addition
to the $25,000 homestead exemption.
FY 1996/97 Proposed Millage Rate
July 17, 1996
Page - 5 -
Assuming that the average residential property with an homestead exemption, increased by 2.5
percent, the total annual impact for overlapping taxing jurisdictions, ($140,000 assess::d value X
2.5% Cap, less $25,000 exemption = $118,500 taxable value) would be as follows usilg the four
alternatives available to us:
Taxing Miami Beach Miami Beach Miami Beach Miami Beach
Jurisdiction @ 7.090 @ 7.499 @7.673 @7. 344
Miami Beach $(13.69) $34.78 $55.40 $8751
Dade County (13.78) (13.78) (13.78) (1378)
School Board 38.50 38.50 38.50 3850
Other 2.40 2.40 2.40 ~.40
Totals $13.43 $61.90 $82.52 $11463
Under the assumptions above, the total operating dollars paid to the City of Miami B::ach at the
rolled-back millage rate would decrease by $13.69; at the current operating millage rate:, the taxes
would increase by $34.78; at the current service level millage rate, the taxes would increase by
$55.40; and at the enhanced service level millage rate, the: taxes would increase by $87.5J. Looking
at the 7.673 and 7.944 millage rate scenarios, would arnount to an additional $5 or $7Jer month,
respectively. On a larger scale, the Miami Beach taxpayer's total annual tax bill cou.d increase
between $13.43 to $114.63, which represents a 3.5% increase to the total tax bill. This, of course,
assumes that the other taxing jurisdictions adopt these millages. It should also be noted that even
at the rolled-back rate, Miami Beach taxpayers would not experience a tax reduction ir their total
tax bill due to the fact that both the Library District and Dade County School Board have planned
for millage increases.
BUDGET ALTERNATIVES AND RECOMMENDATIONS
Four options are available for your consideration; adopt the rolled-back rate of 7.090 which will not
maintain the current service level and require drastic across-the-board budget reductioll:i; maintain
the current millage rate of 7.499 which will be insufficit:nt to maintain the current servi ce level in
the ensuing fiscal year; adopt a millage rate of 7.673 which will maintain the current service level
and offer no enhancements; and adopt a millage rate of 7.944 which will maintain not only the
current, but all twelve service enhancements recommended for your further considerati :m. Of the
twelve increased service levels; four are quality-of-life areas (Recreation, Police, Code
Compliance/Building Inspections, and Film/Fashion/Special Events); the remaining eight, are
infrastructure improvements and internal to the organization.
The Administration recommends that you adopt 7.944 mills to maintain the current and enhanced
service levels. However, it must be noted that any rate below 7.673 will require reductions from
the current service level. The Commission should view the proposed millage rate adopted on this
date as the ceiling from which further reductions could be made in September should you elect to
do so.
FY 1996/97 Proposed Millage Rate
July 17, 1996
Page - 6 -
FIRST PUBLIC HEARING
The first public hearing on the proposed millage rates and tentative budgets for Fiscal Year 1996/97
must be held no later than 80 days (September 18th) or earlier than 65 days (September 3rd) from
the start of the TRIM calendar (July 1st). Other guidelines are: 1) The public hearing cannot be
scheduled on a Sunday or on those days utilized by Metropolitan Dade County or the Dade County
School Board for their public hearings; and 2) If on a day other than Saturday, it must b(~ held after
5:00 P.M.
Based on these guidelines, the first hearing must be held between September 3rd and September
18th. These dates are unavailable for the following reasons:
September 8, 15 Sundays
September 11 Dade County School Board Public Hearing
September 4, 18 Metropolitan Dade County Public Hearings
Of the remaining days, it is recommended that the first public hearing be set for 5:01 P.M.,
Thursday, September 12, 1996 in the City Commission Chambers, City Hall, 1700 Convention
Center Drive, Miami Beach, Florida. As no Commission meeting is set for this date, this will be a
special meeting of the Commission.
I wish to take this opportunity to thank the Office of Management and Budget, the Department
Directors, Assistant City Managers and all City employees that worked so diligently on this budget.
The Administration looks forward to continued input from the Budget Advisory Committ';le, various
City Boards and Committees, and community groups upon release of the Proposed Budget and at
subsequent public hearings to be held in September.
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