2002-24939 Reso
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RESOLUTION NO. 2002-24939
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, wmCH
IS TEN AND SIX TENTHS PERCENT (10.6%) GREATER
THAN THE "ROLLED-BACK" RATE OF 6.598 MILLS; AND
2) THE DEBT SERVICE MILLAGE RATE OF 1.023 MILLS;
FURTHER SETTING THE SECOND PUBLIC HEARING TO
CONSIDER THE MILLAGE RATE FOR FISCAL YEAR
2002/03, FOR 5:01 P. M., THURSDAY, SEPTEMBER 26,2002.
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 Fiscal Year 2002/03 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, on July 31, 2002, the City Commission following a duly noticed public
hearing, adopted Resolution No. 2002-24941, which set the proposed millage rates at 7.299 mills for
general operating purposes, and 1.023 mills for debt service; and
WHEREAS, at this time the Administration would recommend that the City Commission set
the second and final public hearing to consider the aforestated millage rates for Fiscal Year 2002/03.
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 the Fiscal
Year (FY) 2002/03, 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 ten and six tenths percent (10.6%) greater than
the "Rolled-back" rate of 6.598 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 1.023
mills.
(2) The tentative adopted millage rates for the City of Miami Beach, Florida for FY
2002/03 are subj ect to a second and final public hearing, herein set for and to be held at 5:01
p.m., Thursday, September 26, 2002, in the City Commission Chambers, City Hall, 1700
Convention Center Drive, Miami Beach, Florida.
APPROVED /IS TO
FORM & LANGUAGE
& FOR EXECUTION
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cln OF MIAMI BEACH ..
NOTICE Of PUBLIC HEARINGS .. . .
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NOTICE IS HEREBY given that public hearings will.be held by the
Mayor and City Commission of the City of Miami Beach, Florida, in
the Commission Chambers, 3rd floor, City Hall, 1700 Convention
Center Drive, Miami Beach, Florida, on Wednesday, September
11,2002, at the times listed below, to consider the following~r,
first reading:
at 5:01 p.m.: '
I A public hearing on the proposed millage rates and Budget for
Fiscal Year 2002103 for the City of Miami Beach.
at 5:02 p.m.:
A public hearing on the proposed millage rate and budget for Fiscal
Year 2002103 for the Normandy Shores Local Government
Neighborhood Improvement District.
Inquiries may be directed to the Office of Management and Buoget
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. 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.
1n 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 no later than four days prior to the
proceeding, telephone (305) 673-7411 for assistance; if hearing
impaired, telephone the Florida Relay Service numbers, (800) 955-
8n1' ~DD) or (8~0~ ~55.8nO (VOICE), for assistance.
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CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
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Condensed Title:
A Resolution adopting: 1) the tentative ad valorem millage of 7.299 mills for general operating purposes
which is ten and six tenths percent (1 0.6%) greater than the "Rolled-back" rate of 6.598 mills; 2) the debt
service millage rate of 1.023 mills; and 3) setting 5:01 p.m., Thursday, September 26, 2002, for the second
public hearing to consider the millage rate for Fiscal Year 2002/03.
Issue:
Shall the City Commission approve the tentative millage, the debt service millage and set the second
public hearing for September 26, 2002.
Item Summarv/Recommendatlon:
The Administration recommends adopting the resolution which sets the FY 2002/03 operating millage for
general operating purposes, debt service millage, and sets the second public hearing for September 26,
2002.
Advisory Board Recommendation:
I
Financial Information:
Source of
Funds:
IFin~
. ,.APPrOvlJd'
City Clerk's Office Legislative Tracking:
I Jose Cruz
Sign-Offs:
. Departme
AGENDA ITEM
DATE
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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:
Mayor David Dermer and
Members of the City Commission
Jorge M. Gonzalez . d
City Manager ~ ( (...A
DATE: September 11,2002
TO:
SUBJECT:
A RESOLUTION OF THE MAYOR ITY 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 TEN AND SIX TENTHS PERCENT (10.6%)
GREATER THAN THE "ROLLED-BACK" RATE OF 6.598 MILLS; AND 2)
THE DEBT SERVICE MILLAGE RATE OF 1.023 MILLS; FURTHER
SETTING THE SECOND PUBLIC HEARING TO CONSIDER THE
MILLAGE RATE FOR FISCAL YEAR 2002/03, FOR 5:01 P. M.,
THURSDAY, SEPTEMBER 26,2002.
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) 2002/03
General Operating 7.299 mills (7.299 last year)
Debt Service 1.023 mills ( 1.077 last year)
Total 8.322 mills ( 8.376 last year)
2) The tentatively adopted combined millage rate of 8.322 mills is .054 mills or 0.6% less than
the 8.376 combined millage rate for FY 2001102. While the tentatively adopted operating
millage rate of 7.299 mills for FY 2002/03 is equal to the rate for FY 2001/02, state statute
requires that we advertise that this rate is 10.6 % greater than the "Rolled-back" rate of 6.598
mills.
3) The second public hearing to consider the fmal millage rates and budgets for FY 2002/03
shall be at 5:01 P.M., Thursday, September 26, 2002 in the City Commission Chambers, City
Hall, 1700 Convention Center Drive.
Tentative Operating and Debt Service Millages
September 11, 2002
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 2002/03 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 2002/03. 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 31, 2002, and certified to the
Property Appraiser, would require mailin2 of a revised notice of property taxes to each taxpayer.
The notice would be prepared by the Property Appraiser, at the expense of the taxin2
authority.
ANALYSIS OF PROPERTY VALUES IN MIAMI BEACH
On July 1, 2002, the City received the "2002 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 $10,560,066,688, including $305,716,104 in new
construction which is one of the largest increases this City has experienced in its recent history.
The preliminary 2002 value represents an increase of 13.9 percent over 2001's final value of
$9,269,079,526. Alternately, the increase is 12.4 percent over 2001's preliminary value of
$9,398,715,152. The difference of $129,635,626 between 2001's preliminary and final values
represents the equalization loss of less than 1.4 percent due to appeals, etc.
The comparative assessed values for the Miami Beach Redevelopment Agency South Pointe
redevelopment district increased by $76,791,644 or 9.1 percent from $840,714,532 to
$917,506,176. The assessed values in the City Center redevelopment district increased by
$138,775,486 or 11.4 percent from $1,218,222,763 to $1,356,998,249.
Tentative Operating and Debt Service Millages
September 11, 2002
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 2002 Certification of Taxable
Value and has been set at $10,560,067. 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 $10,190,465.
The proposed millage rate of7.299 mills will generate ad valorem tax revenues of $74,380,204 (of
which $13,329,290 will be transferred to the Redevelopment Agencies) for a net revenue total of
$61,050,914 in the General Fund. The total amount is $8,180,026 more than the prior year levy of
$66,200,178, reflecting a 12.4 percent increase. The net General Fund ad valorem budget has
increased $6,685,273 (12.3%) from $54,365,641 to $61,050,914.
DETERMINING THE DEBT SERVICE MILLAGE LEVY
The debt service payment for FY 2002/03 is $10,424,846 and requires a tax rate of 1.023 mills. This
rate is 0.054 mills, or five percent (5.0%) less than the FY 2001/02 rate of 1.077 mills. This rate
anticipates the sale of $35,000,000 of General Obligation Bonds during FY 2002/03. These bonds
represent the second issue of the $92,465,000 of bonds authorized by the voters in November 1999,
bringing the total amount issued to $65,000,000.
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 2001/02 (final) and FY 2002/03 (preliminary).
Tax Rate Tax Levy
FY 01/02 FY 02103 Inc/(Dec) FY 01/02 FY 02103 Inc/(Dec)
General Operating 7.299 7.299 (0.000) $65,287,088 $74,380,204 $9,093,116
Debt Service 1.077 1.023 (0.054) 9.633.401 10.424.846 791.445
TOTAL 8.376 8.322 (0.054) $74,920,489 $84,805,050 59,884,561
If these recommended tax rates are tentatively adopted, then the combined tax rate will decrease by
0.054 mills, or 0.6 percent less than the current year. The operating millage will remain constant,
and debt service millage will decrease by 0.054 mills, or five percent (5.0%).
Tentative Operating and Debt Service Millages
September 11, 2002
Page 4
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
Inland Navigation District. In FY 01102, the Miami Beach portion of the total tax bill was 33.2
percent. The proposed millage rates for FY 2002/03 will decrease the Miami Beach portion of
the tax bill to 33.1 percent based on tax rates announced by other jurisdictions.
Revised FY 2002/03 tax rates may be considered by Miami-Dade County in September. The
countywide tax rate will increase by 0.253 mills to 5.966 mills; the County's debt service will
decrease by 0.162 mills to 0.390 mills. The Library District has announced that the millage will
increase by 0.050 mills to 0.501 mills. While it is not possible to determine the exact amount
returned in additional services. it should be noted that Miami-Dade County returned $9,263,009
during FY 2001102 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.
2002, but has tentatively announced a rate of 9.252 mills; a decrease of 0.124 mills. The South
Florida Water Management District has proposed no increase from the current rate of 0.697 mills.
The South Florida Inland Navigation District has proposed no increase from the current rate of 0.039
mills.
Illustrated below are the current an . proDose tax rates or em tiDI e taxing au ontles.
Adopted Proposed % %of
Taxing Jurisdiction FY 01/02 FY 02103 Incl(Dec) Change Total
Miami Beach 33.1
General Operating 7.299 7.299 0.000 0.00
Debt Service 1.077 1.023 (0.054) (5.01)
Dade County 27.3
Countywide Operating 5.713 5.966 0.253 4.43
Library 0.451 0.501 0.050 11.09
Debt Service 0.552 0.390 (0.162) (29.35)
School Board 9.376 9.252 (0.124) (1.32) 36.7
Other 0.736 0.736 0.000 0.00 2.9
Totals 25.204 25.167 (0.037) (0.15) 100.0
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Tentative Operating and Debt Service Millages
September II, 2002
Page 5
COMBINED MILLAGE LEVY IMP ACT 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 2002, the CPI has been determined to be 1.6 percent
and therefore, the increase is capped at 1.6 % for increased values as of January 1, 2002. 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
1.6 % percent to a new value of $203,200. The homestead exemption of $25,000 is then deducted,
yielding a taxable value of $178,200.
Using the proposed tax rates, that value is then taxed as follows:
Taxing
Jurisdiction
Proposed
@ 7.299
1.023
8.322
Miami Beach
Miami-Dade County
School Board
Other
$17.17
46.61
7.91
2.35
Totals
S 74.04
At the combined proposed millage rate of8.322, 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 8.376 millage rate,
would increase by $17.17. The overall taxes would increase by $74.04. 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 2002/03 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., Thursday, September 26,
2002 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 2002/03 and establishes a second public hearing to
be held on September 26,2002, at 5:01 P. M.
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