Resolution 2019-30974 RESOLUTION NO. 2019-30974
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING: 1) THE
TENTATIVE AD VALOREM MILLAGE OF 5.7288 MILLS FOR
FISCAL YEAR (FY) 2020 FOR GENERAL OPERATING
PURPOSES, WHICH IS THREE AND TWO TENTHS PERCENT
(3.2%) MORE THAN THE "ROLLED-BACK RATE OF 5.5522
MILLS; AND 2) THE DEBT SERVICE MILLAGE RATE OF 0.2933
MILLS, SUBJECT TO A SECOND PUBLIC HEARING TO
CONSIDER THE MILLAGE RATE FOR FY 2020 ON
WEDNESDAY, SEPTEMBER 25, 2019, AT 5:01 P.M.
WHEREAS, on July 31, 2019, the Mayor and City Commission set the proposed FY 2020
general operating millage rate at 5.7288 mills (excluding debt service) for general operating
purposes, which is the same as the adopted FY 2019 general operating millage rate; and 0.2933
mills for debt service, which is an increase of 0.1333 mills from the adopted FY 2019 debt service
millage rate, and which increase is necessary to fund the debt service from the first tranche of
General Obligation Bonds issued by the City in 2019, following the voter referendum approval of
the City's General Obligation Bond program on November 6, 2018; and
WHEREAS, the proposed FY 2020 general operating millage rate of 5.7288 mills is
comprised of a general millage rate of 5.6298 that funds operating costs in the General Fund, a
capital renewal and replacement millage rate of 0.0235 that provides a dedicated source of
funding for renewal and replacement projects that extend the useful life of General Fund capital
assets, and a capital Pay-As-You-Go millage rate of 0.0755 that provides a dedicated source of
funding for General Fund capital projects; 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 2020 general operating purposes; and 2) adopt the
required debt service millage rate for FY 2020; this is accomplished by adopting a Resolution
which 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 aforementioned millage rates for FY 2020.
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 2020
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 5.7288 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 three and two-tenths percent(3.2%)more than
the "Rolled-back" rate of 5.5522 mills.
(b) For the purpose of providing payment on the principal and interest
portions of outstanding General Obligation Bond Debt and miscellaneous
debt service expenditures, the rate assigned amounts to 0.2933 mills.
(2) The tentative adopted millage rates for the City of Miami Beach, Florida for FY 2020
are subject to a second and final public hearing, herein set for and to be held at 5:01 p.m.,
Wednesday, September 25, 2019, in the City Commission Chambers, City Hall, 1700 Convention
Center Drive, 3rd Floor, Miami Beach, Florida 33139.
PASSED AND ADOPTED this 11th day of September, 2019.
ATTEST:
••"° • : * 0 Dan Gelber, Mayor
.WCORP1ORATED ,
col
Rafael E. Granado, Ci y C erk ''11%.......,r....
APPROVED AS TO
FORM &LANGUAGE
&FOR EXECUTION
20.1j
(7,
City Attorney A..ixf Date
Resolutions- R7 E
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: September 11, 2019
5:01 p.m. First Reading Public Hearing
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ADOPTING: 1) THE TENTATIVE AD
VALOREM MILLAGE OF 5.7288 MILLS FOR FISCAL YEAR (FY) 2020 FOR
GENERAL OPERATING PURPOSES, WHICH IS THREE AND TWO
TENTHS PERCENT (3.2%) MORE THAN THE "ROLLED-BACK RATE OF
5.5522 MILLS; AND 2) THE DEBT SERVICE MILLAGE RATE OF 0.2933
MILLS, SUBJECT TO A SECOND PUBLIC HEARING TO CONSIDER THE
MILLAGE RATE FOR FY 2020 ON WEDNESDAY, SEPTEMBER 25, 2019, AT
5:01 P.M.
RECOMMENDATION
See attached Memorandum.
Legislative Tracking
Office of Management and Budget
ATTACHMENTS:
Description
D Memo-FY 2020 General Operating Millage
o Resolution
o Ad
Page 1227 of 2228
t\/\ IA/\/\ BEACH
City of Miami Beach,1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachfL gov
COMMISSION MEMORANDUM
TO: Mayor Dan Gelber and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: September 11, 2019
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, ADOPTING: 1) THE TENTATIVE AD VALOREM MILLAGE OF
5.7288 MILLS FOR FISCAL YEAR 2020 FOR GENERAL OPERATING PURPOSES,
WHICH IS THREE AND TWO TENTHS PERCENT(3.2%)MORE THAN THE"ROLLED-
BACK RATE OF 5.5522 MILLS; AND 2) THE DEBT SERVICE MILLAGE RATE OF
0.2933 MILLS, SUBJECT TO A SECOND PUBLIC HEARING TO CONSIDER THE
MILLAGE RATE FOR FY 2020 ON WEDNESDAY,SEPTEMBER 25,2019,AT 5:01 P.M.
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 Miami-
Dade County Property Appraiser:
1) Proposed Millage Rates for FY 2020:
General Millage 5.6298 mills
Capital Renewal & Replacement Millage 0.0235 mills
Pay-As-You-Go (PayGo) Millage 0.0755 mills
Total General Operating Millage 5.7288 mills (same as last year)
Voted Debt Service Millage 0.2933 mills (0.1333 increase over last year)
Total Combined Millage 6.0221 mills
2) The tentatively adopted total combined millage rate of 6.0221 mills for FY 2020 reflects an
increase of 0.1333 mills over the total combined millage rate of 5.8888 adopted for FY 2019.
The tentatively adopted total operating millage rate of 5.7288 for FY 2020 is 0.1766 mills, or
3.2 percent, more than the "rolled-back" rate of 5.5522. As a result, the City is required to
publish a Notice of Proposed Tax Increase in accordance with the State of Florida's Truth in
Millage (TRIM) requirements.
3) The second public hearing to consider the final millage rates and budgets for FY 2020 shall
be held on Wednesday, September 25,2019 at 5:01 P.M.,in the City Commission Chambers,
City Hall, 1700 Convention Center Drive, 3rd Floor, Miami Beach, Florida 33139.
The"rolled-back"millage rate for FY 2020 is the millage rate required to produce the same level of
property tax revenues in the General Fund in FY 2020 as anticipated to be received in FY 2019.It is
important to note that the overall January 1,2018 citywide tax roll declined by almost$696.4 million
Page 1228 of 2228 • •
FY 2020 Proposed Millage
September 11, 2019
Page 2
between the July 1, 2018 certified valuation and the July 1, 2019 final valuation due to appeals,
adjustments,etc.,which is part of the reason the FY 2020"rolled-back"rate is 0.1766 mills, or 3.2
percent,lower than the FY 2019 total general operating miliage rate and is lower than it would have
been if the "rolled-back" rate was only adjusted for the increase in revenues generated by higher
property values. The area outside of the City Center Redevelopment Area (RDA), which impacts
General Fund revenues directly, decreased in value by approximately $501.1 million during the
same period. -
PROCEDURE
Florida Statutes, Section 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 2020 general operating purposes. This is
accomplished by adopting a Resolution which 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 2020, which also includes budgets for
Enterprise, Internal Service, Special Revenue, G.O. Bond Debt Service Funds, as well as
the City Tax Increment Financing(TIF)portion of the City Center RDA.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.
ANALYSIS OF PROPERTY VALUES IN MIAMI BEACH
On July 1, 2019, the City received the 2019 Certification of Taxable Value from the Miami-Dade
County Property Appraiser indicating that the overall taxable value for the City of Miami Beach was
$40.1 billion, including $302.5 million in new construction. Overall, this represented a 3.1 percent
increase in values from the 2018 Certification of Taxable Value provided by the Miami-Dade County
Property Appraiser on July 1, 2018.
July 2018 July 2019
Certified Certified Chane Chan.e
Property Assessment •
Existing Values 38,701,545,195 39,796,383,821 1,094,838,626 2.8%
New Construction 186,115,906 302,508,638 116,392,732 62.5%
Total Citywide 38,887,661,101 40,098,892,459 1,211,231,358 3.1%
City Center RDA -5,993,199,959 -8,258,372,786 -265,172,827 4.4%
Total Citywide-Net of City Center RDA 32,894,461,142 33,840,519,673 946,058,531 2.9%
Property Tax Revenue Projection 182,168,000 187,389,000 5,221,000 2.9%
Further,the following table shows the difference between the 2019 Certification of Taxable Value
from the Miami-Dade Property Appraiser as of July 1,2019 and the 2019 Estimated Taxable Value
as of June 1, 2019 provided by the Miami-Dade County Property Appraiser.
Page 1229 of 2228
FY 2020 Proposed Millage
September 11, 2019
Page 3
June 2019 July 2019 $
Prelimina Certified Chan•e Charlie
Property Assessment
Existing Values 39,800,000,000 39,796,383,821 -3,616,179 -0.01%
New Construction 235,000,000 302,508,638 67,508,638 28.7%
Total Citywide 40,035,000,000 40,098,892,459 63,892,459 0.2%
City Center RDA -6,292,859,957 -6,258,372,786 -34,487,171 -0.5%
Total Citywide-Net of City Center RDA 33,742,140,043 33,840,519,673 98,379,630 0.3%
Property Tax Revenue Projection 186,863,000 187,389,000 526,000 0.3%
Preliminary property tax revenue projections as of June 1,2019 assumed property values within the
City Center RDA would increase by approximately 5.0 percent over the 2018 Certification of
Taxable Value based on historical trends. However, based on the 2019 Certification of Taxable
Value provided by the Miami-Dade County Property Appraiser's Office as of July 1,2019, property
values within the City Center RDA increased approximately 4.4 percent,thereby slightly increasing
citywide General Fund property tax revenues by a greater percentage than originally projected as of
June 1, 2019.
Lastly,citywide taxable values,excluding the City Center RDA district as of July 1,2019,increased
from $32.9 billion to $33.8 billion, which is an increase of approximately $946.1 million, or 2.9
percent, over the 2018 Certification of Taxable Value provided by the Miami-Dade Property
Appraiser.
January 1,2018 Value(in billions) January 1,2019 Value(in billions)
July 1, Revised Change in • July 1,2019
2018 Value 2018 (FY2020 3 %Chg.
(FY2019 (FY2019 Values Chg. Budget) Chg.
Bud ret Pro'ection)
Total Citywide 38.888 38.191 (0.696) -1.8% 40.099 1.211 3.1%
City Center RDA 5.993 5.798 (0.195) -3.3% 6.258 0.265 4.4%
Citywide-Net of City Center RDA 32.894 32.393 (0.501) -1.5% 33.841 0.946 2.9%
DETERMINING THE VOTED DEBT SERVICE MILLAGE LEVY
On November 6, 2018, the City of Miami Beach voters approved the issuance of a $439 million
G.O. Bond to fund a total of 57 capital projects citywide, ranging from vertical construction,
roadwork, park constructions and renovations, technology implementation, renewals and repairs,
and underground infrastructure work.The required FY 2020 Voted Debt Service millage rate would
provide for funding of the first tranche,totaling$153 million, of the$439 million G.O.Bond program
through the assessment, levy, and collection of ad-valorem tax on all property within the City and
the full faith,credit,and taxing power of the City pledged to the payment of the principal and interest
on the bonds issued as part of the voter-approved G.O. Bond Program.
For FY 2020, the total required debt service payment is$11.8 million,which requires the levy of a
Voted Debt Service millage rate of 0.2933 mills.The FY 2020 Voted Debt Service millage rate is
0.1333 mills more than the Adopted FY 2019 Voted Debt Service millage rate of 0.1600 due to the
new G.O. Bond Program. The required $11.8 million payment for FY 2020 is comprised of
remaining debt service required for the City's outstanding 2011 G.O. Bonds of$4.7 million, plus
$7.1 million attributed to the new voter-approved G.O. Bond Program.
Page 1230 of 2228
FY 2020 Proposed Millage
September 11, 2019
Page 4
It is important to note that the required FY 2020 Voted Debt Service millage rate is reflective of
approximately $621,000 in anticipated debt service savings resulting from refunding of the City's
2003 G.O. Bonds during FY 2019 that will be carried forward and utilized to fund the required FY
2020 debt service payment for the City's outstanding 2011 and 2019 G.O. bonds.
IMPACT OF PROPOSED MILLAGE LEVY ON PROPERTY OWNERS
Homesteaded Properties •
In 1992, voters approved an amendment to the Florida Constitution known as Amendment 10 or
Save Our Homes(SOH). SOH is an assessment limitation, or"cap", on increases in the assessed
value of a homestead residence.Those increases are limited to 3 percent or the percent change in
the CPI (Consumer Price Index), whichever is less. The"cap"goes into effect beginning the year
after a homestead exemption is granted.
Based on property values as of July 1, 2019,the median value of homesteaded property in Miami
Beach is$195,522 while the average is$500,407.The impact of the City's proposed FY 2020 total
combined millage rate of 6.0221 mills on the median homesteaded property within the City would be
an increase of$33 while the impact to the average value homesteaded property within the City
would be an increase of$106 as summarized in the table below.
Homesteaded Properties
FY 2019 FY 2020
Median** Average" Median** Average**
Preliminary Taxable Value" $194,251 $493,753 $195,522 $500,407
City of Miami Beach
Operating $ 1,113 $2,829 $ 1,120 $2,867
Voted Debt 31 79 57 147
Total Miami Beach $1,144 $2,908 $ $3,014
$Change in Taxes
Operating $7 $38
Voted Debt 26 68
Total Miami Beach $33 $106
"Source: Miami-Dade County Property Appraiser's—2018 and 2019-Preliminary Average-Median-
Homestead-Residential-Values files
Impact on Non-Homesteaded Properties
The annual increase in market value of a non-homesteaded property is capped at 10 percent(does
not apply to school millage rates). While the citywide average increase in property values is 3.1
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 property resulting in a reset of the cap.Another potential factor, if applicable,would be the
value of new construction which can contribute to a property value increase of higher than 10
percent.
Page 1231 of 2228
FY 2020 Proposed Millage
September 11, 2019
Page 5
OVERLAPPING JURISDICTIONAL OPERATING AND DEBT SERVICE MILLAGE RATES
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 68.9 percent of a Miami Beach property owner's tax bill.
The proposed FY 2020 countywide tax rate for Miami-Dade County remained flat at 4.6669 mills;
the library tax rate also remained flat at 0.2840 mills; and the debt service millage increased by
0.0136 mills to 0.4780 mills. The tax rate for the Miami-Dade School District increased by 0.4150
mills to 7.1480 mills. The Children's Trust tax rate increased by 0.0265 mills to 0.4680 mills, As a
whole, the millage rates for the South Florida Water Management District, Okeechobee Basin,
Everglades Project, and Florida Inland Navigational District decreased by 0.0141 mills to 0.3115
mills.
With the proposed rates for FY 2020,the Miami Beach portion of the tax bill is approximately 31.1
percent of the total bill. Of note, the FY 2020 Countywide millage rate is 0.9571 mills less than the
Countywide millage in FY 2007, as compared to the City's FY 2020 millage rate that is 1.6509 mills
less than the City's FY2007 millage. Further,the School Board millage is 0.9570 mills below the FY
2007 School Board millage of 8.1050 mills.The significant difference in the total overlapping millage
rate is a direct result of the City's continuing effort to keep millage rates as low as possible. A
summary of the tax rate changes is provided in the following table.
OVERLAPPING TAX %of Variance Variance %of
MILLAGE FY 2007 FY 2007 FY 2019 FY 2020 from from FY 2020
Total FY 2007 FY 2019 Total
City of Miami Beach
Operating 7.1920 30.8% 5.6298 5.6298 (1.5622) 0.0000 29.1%
Renewal&Replacement 0.1820 0.8% 0.0235 0.0235 (0.1585) 0.0000 0.1%
Pay-As-You-Go Capital 0.0000 0.0% 0.0755 0.0755 0.0755 0.0000 0.4%
Operating Millage 7.3740 31.6% 5.7288 5.7288 (1.6452) 0.0000 29.6%
Voted Debt Service 0.2990 1.3% 0.1600 0.2933 (0.0057) 0.1333 1.5%
Subtotal 7.6730 32.9% 5.8888 6.0221 (1.6509) 0.1333 31.1%
Miami Dade County
Countywide 5.6150 24.1% 4.6669 4.6669 (0.9481) 0.0000 24.1%
Library - 0.4860 2.1% 0.2840 0.2840 (0.2020) 0.0000 1.5%
Debt Service 0.2850 1.2% 0.4644 0.4780 0.1930 0.0136 2.5%
Subtotal 6.3860 27.4% 5.4153 5.4289 (0.9571) 0.0136 28.0%
School Board 8.1050 34.8% 6.7330 7.1480 (0.9570) 0.4150 36.9%
Children's TruSt 0.4220 1.8% 0.4415 0.4680 0.0460 0.0265 2.4%
Other 0.7360 3.2% 0.3256 0.3115 (0.4245) (0.0141) 1.6%
Total 23.3220 100.0% 18.8042 19.3785 (3.9435) 0.5743 100.0%
Page 1232 of 2228
FY 2020 Proposed Millege
September 11, 2019
Page 6
IMPACT OF COMBINED/TAX RATES OF OVERLAPPING JURISDICTIONS ON
HOMESTEADED PROPERTIES
The City of Miami Beach's preliminary 2019 median and average homesteaded residential taxable
values are $195,522 and $500,407 respectively. Applying the total combined millage rates
proposed for FY 2020 to the median and average taxable values results in a property tax increase
of approximately$135 for the median and$413 for the average homesteaded residential tax bill in
the City of Miami Beach.
Median properties would pay approximately$3,788 for all taxing jurisdictions combined, while the
property taxes generated for average homesteaded residential properties would be approximately
$9,698 per homesteaded property. Of these taxing jurisdictions, the highest component is the
Miami-Dade School Board at$1,398 for a median valued homesteaded property and$3,577 for an
average valued homesteaded property.
The following table provides examples of changes in the property taxes levied for homesteaded
properties using the tax rates proposed for FY 2020.
Impact on Homesteaded Properties
FY 2019 FY 2020
Median" Average** Median" Average**
Preliminary Taxable Value" $194,251 $493,753 $195,522 $500,407
City of Miami Beach
Operating $ 1,113 $2,829 $1,120 $2,867
Voted Debt 31 79 57 147
Total Miami Beach $1,144 $2,908 $1,177 $3,014
Miami Dade County 1,052 2,674 1,061 2,717
Schools 1,308 3,324 1,398 3,577
Other 149 379 152 390
Total Combined $3,653 $9,285 $3,788 $9,898
Change in Taxes
City of Miami Beach
Operating $7 $38
Voted Debt 26 68
Total Miami Beach $33 $106
Miami Dade County 9 43
Schools 90 253
Other 3 11
Total Combined $135 $413
**Source:Miami-Dade County Property Appraiser's—2018 and 2019-Preliminary Average-Median-
Homestead-Residential-Values files
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.
Page 1233 of 2228
FY 2020 Proposed Millage
September 11, 2019
Page7
HISTORICAL PERSPECTIVE
It is important to note that in prior years,the City of Miami Beach significantly reduced tax rates as
property values increased. Between FY 2000 and FY 2010, property tax rates declined
approximately 2.7857 mills. In FY 2008 alone, the property tax rate declined by approximately
1.7760 mills with annual savings to the average homesteaded property of over$400. In addition, in
FY 2006 and FY 2007,the City funded$200 and$300 homeowner dividends paid to homesteaded
property owners in the City. The City's total combined millage rates for FY 2017, FY 2018, and FY
2019 were the lowest it has been in the City's recent history.
Millage Rates Tax Levy(in millions)
General
Fund Total
(including
Final/ S. Pointe,
Taxable Revised Total General Total Tax Capital
Property Taxable Combined Fund/RDA Levy Renewal&
Taxable Values Values Citywide Operating including Repl.&
Values Chart (billions) (billions) Millage Millage Debt PayGo)
FY 1998 $ 6.46 $ 6.40 9.2100 7.4990 $ 57.45 $ 46.78
FY 1999 $ 6.97 $ 6.87 8.9830 7.4990 $ 60.37 $ 44.66
FY 2000 $ 7.66 $ 7.54 8.6980 7.4990 $ 64.29 $ 47.36
FY 2001 $ 8.37 $ 8.22 8.5550 7.3990 $ 69.08 $ /49.75
FY 2002 $ 9.40 $ 9.22 8.3760 7.2990 $ 75.97 $ 54.37
FY 2003 $ 10.56 $ 10.41 8.3220 7.2990 $ 84.81 $ 61.05
FY 2004 $, 12.09 $ 11.85 8.1730 7.2990 $ 95.39 $ 66.17
FY 2005 $ 14.04 $ 13.86 8.1730 7.4250 $ 110.74 $ 79.38
FY 2006 $ 17.45 $ 17.15, 8.0730 7.4810 $ 135.91 $ 111.69
FY 2007 $ 22.74 $ 22.26 7.6730 7.3740 $ 168.38 $ 140.31
FY 2008 $ 26.85 $ 26.14 5.8970 5.6555 $ 150.42 $ 125.33
FY 2009 $ 26.90 $ 25.89 5.8930 5.6555 $ 150.59 $ 125.94
FY 2010 $ 24.70 $ 23.24 5.9123 5.6555 $ 138.70 $ 115.73
FY 2011 $ 22.10 $ 20.97 6.5025 6.2155 $ 136.55 $ 112.14
FY 2012 $ 21.98 $ 20.75 6.4539 6.1655 $ 134.75 $ 111.29
FY 2013 $ 23.07 $ 22.02 6.3477 6.0909 $ 139.10 $ 114.32
FY 2014 $ 24.66 $ 23.64 6.1163 5.8634 $ 143.26 $ 117.41
FY 2015 $ 27.10 $ 26.27 6.0237 5.7942 $ 155.10 $ 127.76
FY 2016 $ 30.70 $ 29.92 5.9123 5.7092 $ 172.42 $ 143.16
FY 2017 $ 34.70 $ 33.99 5.8888 5.7092 $ 194.11 $ 160.78
FY 2018 $ 37.39 $ 36,63 5.8888 5.7224 $ 209.21 $ 175.36
FY 2019 $ 38.88 $ 38.19 5.8888 5.7288 $ 217.51 $ 182.16
FY 2020 $ 40.10 • 6.0221 MEM $ 229.41 $ 187.39
*Data not available until next calendar year
Page 1234 of 2228
FY 2020 Proposed Millage
September 11, 2019
Page 8
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Fiscal Year
•Property Values and Tax Levy
Today's General Fund operating budget also reflects greater diversification of revenues since FY
2007.The proposed FY 2020 General Fund operating budget includes$36.8 million in resort taxes
to fund tourism-eligible expenditures (an increase of $921,000 from FY 2019), a $4.4 million
transfer from the City Center RDA in accordance with the 4th Amendment to the Interlocal
Agreement between Miami-Dade County and the City(an increase of$14,000 from FY 2019),and a
$1.2 million transfer of Parking Operations Fund year-end surplus(same as FY 2019). In large part,
due to these alternative sources, property tax revenues represent 53.6 percent of the total funding
for the proposed FY 2020 General Fund budget, as compared to 59.1 percent in FY 2007, which
represents a significant reduction over the last thirteen years.
Despite the proposed FY 2020 General Fund operating budget increasing from$237.7 million in FY
2007 to$350.0 million for FY 2020,which is an increase of$112.4 million,or 47.3 percent,over the
last thirteen years,the property tax levy has only increased by$47.1 million, or 33.6 percent,over
the same period.
Page 1235 of 2228
FY 2020 Proposed Millage
September 11, 2019
Page 9
340 - 45
320 -
300 — 40
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FY FY FY FY FY FY FY FY FY FY FY FY FY FY
2007 2008 2009 2010 2011 2012 2013 2014 2015 20'6 2017 2018 2019 2020
Property Values Tax Levy includng Debt
STATUTORY REQUIREMENTS
Florida Statute 200.065, 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
Florida Statute,the City is required,within 35 days of receipt of the"Certification of Taxable Value"
(received July 1,2019),to advise the Miami-Dade County Property Appraiser of the proposed total
general operating millage rate,the calculated"rolled-back"rate and the date,time,and place of the
first public hearing to consider the proposed millage rates and budgets for FY 2020.The required
Voted Debt Service millage rate must also be set at the same time as the total general operating
millage rate.
After setting the proposed FY 2020 millage rate,the Mayor and City Commission may, at any time
prior to the final adoption, lower the rates by adjusting priorities. However, increasing the millage
rate may only be accomplished by an expensive mailing and advertising process to every property
owner on Miami Beach. The City's proposed operating millage rate as well as that of other taxing
authorities will be included in the Truth-in-Millage(TRIM)statement sent to each property owner in
the City.
MAXIMUM MILLAGE DETERMINATION
As presented at the May 21, 2019 Commission Budget Workshop and Finance and Citywide
Projects Committee(FCWPC)Budget Briefings,the FY 2020 total general operating millage rate is
proposed at 5.7288 mills, which reflects no change from the prior year FY 2019 adopted total
general operating millage rate. Based on the July 1,2019 Certification of Taxable Value received
from the Miami-Dade County Property Appraiser, the levy of 5.7288 mills would generate
approximately$187.4 million in General Fund property tax revenues, which is an increase of$5.2
million over FY 2019 budgeted property tax revenues Citywide (net of the City Center RDA).
•
Page 1236 of 2228
FY 2020 Proposed Millage
September 11, 2019
Page 10
July 2018 July 2019
Certified Certified
Property Assessment
Existing Values 38,701,545,195 39,796,383,821
New Construction 186,115,906 302,508,638
Total Citywide 38,887,661,101 40,098,892,459
City Center RDA (5,993,199,959) (6,258,372,786)
Citywide Total-Net of City Center RDA 32,894,461,142 33,840,519,673
Property Tax Revenue Projection 182,168,000 187,389,000
Property Tax Revenue Projection Variance 5,221,000
Further, pursuant to State Statute, the City may elect to approve millage rates above the "rolled-
back"rate up to the constitutional cap of 10 mills,subject to the following votes by the Commission
or referendum:
• Option I: A majority approval of the Mayor and City Commission is required to approve a
millage up to 6.1727 mills(equivalent to a 3.39 percent increase in Property Tax revenues).
The 1.0339 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 Mayor and City Commission is required
to approve a millage up to 6.7900 mills(equivalent to a 10 percent increase in Property Tax
revenues above Option I).
• Option III:A unanimous approval of the Commission or referendum is required to approve a
millage above 6.7900 mills.
Adoption of the total general operating millage rate of 5.7288 mills proposed for FY 2020 would,
therefore, require a majority approval (4 of 7 votes) by the Mayor and City Commission per the
State of Florida's Truth-in-Millaqe (TRIM) requirements.
SECOND PUBLIC HEARING
The second public hearing on the tentatively adopted millage rate and budget for FY 2020 must 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 25, 2019, at 5:01 P.M., in the City Commission
Chambers, City Hal1,1700 Convention Center Drive, 3rd Floor, Miami Beach, Florida 33139.
CONCLUSION
The Administration recommends adoption of the attached Resolution,which sets both tentative total
general operating and voted debt service millage rates for FY 2020 at 5.7288 mills and 0.2933 mills,
respectively, and sets the date, time, and place of the second public hearing to be held on
Wednesday,September 25, 2019,at 5:01 P.M., in the City Commission Chambers,City Hall, 1700
Convention Center Drive, 3rd Floor, Miami Beach, Florida 33139.
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24NE I NEIGHBORS SUNDAY AUGUST 2S20:9
MIAMIUERALD.COM
MIAMBEACH
CITY OF MIAMI BEACH
NOTICE OF PUBLIC HEARINGS
SEPTEMBER 11, 2019
NOTICE IS HEREBY given that the following public hearings will be heard by the Mayor and City Commissioners of the City of Miami Beach,Florida,in the
Commission Chamber, Third Floor, City Hall, 1700 Convention Center Drive, Miami Beach, Florida, on September 11, 2019, at the time listed, or as soon
thereafter as the matter can be heard:
5:01 a.m.First Reading Public Hearing
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,FLORIDA.ADOPTING:1)THE TENTATIVE AD VALOREM MILLAGE
OF 5.7288 MILLS FOR FISCAL YEAR(FY)2020 FOR GENERAL OPERATING PURPOSES.WHICH IS THREE AND TWO TENTHS PERCENT(3.2%)MORE THAN
THE"ROLLED-BACK"RATE OF 5.5522 MILLS;AND 2)THE DEBT SERVICE MILLAGE RATE OF 0.2933 MILLS,SUBJECT TO A SECOND PUBLIC HEARING
TO CONSIDER THE MILLAGE RATE FOR FY 2020 ON WEDNESDAY,SEPTEMBER 25,2019,AT 5:01 P.M. This Resolution is being heard pursuant to Sections
166.041 and 200.065 FS.Inquiries may be directed to the Budget and Performance improvement Office at 305.673.7510.
5:01 D.m.First Reading Public Hearing
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,FLORIDA,ADOPTING TENTATIVE BUDGETS FOR THE GENERAL, •
G.O.DEBT SERVICE,RDA AD VALOREM TAXES,ENTERPRISE,INTERNAL SERVICE,AND SPECIAL REVENUE FUNDS FOR FISCAL YEAR(FY)2020,SUBJECT
TO A SECOND PUBLIC HEARING SCHEDULED ON WEDNESDAY,SEPTEMBER 25, 2019,AT 5:01 P.M. This Resolution is being heard pursuant to Sections
166.041 and 200.065 F.S.Inquiries may be directed to the Budget and Performance Improvement Office at 305.673.7510.
5:02 o.m.First Reading Public Hearing
A RESOLUTION OFTHE BOARD OF DIRECTORS OFTHE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING
THE TENTATIVE AD VALOREM MILLAGE RATE OF 0.8181 MILLS FOR FISCAL YEAR (FY) 2020 FOR THE NORMANDY SHORES LOCAL GOVERNMENT •
NEIGHBORHOOD IMPROVEMENT DISTRICT,WHICH IS FOUR AND FIVE TENTHS PERCENT(4.5%)LESS THAN THE"ROLLED-BACK"RATE OF 0.7810 MILLS,
SUBJECT TO A SECOND PUBLIC HEARING SCHEDULED ON WEDNESDAY, SEPTEMBER 25,2019,AT 5:02 P.M.This Resolution is being heard pursuant to
Sections 166.041 and 200.065 F.S.Inquiries maybe directed to the Budget and Performance Improvement Office at 305.673.7510.
5:02 n.m.First Reading Public Hearing
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT
ADOPTING THE TENTATIVE OPERATING BUDGET FOR FISCAL YEAR(FY)2020,SUBJECT TO A SECOND PUBLIC HEARING SCHEDULED ON WEDNESDAY,
SEPTEMBER 25,2019,AT 5:02 P.M.This Resolution is being heard pursuant to Sections 166.041 and 200.065 F.S.Inquiries may be directed to the Budget and
Performance Improvement Office at 305.673.7510.
5:03 o.m—First Reading Public Hearing
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,FLORIDA,ADOPTING THE TENTATIVE CAPITAL IMPROVEMENT
PLAN FOR FISCAL YEARS(FY) 2020 -2024 AND ADOPTING THE CITY OF MIAMI BEACH TENTATIVE CAPITAL BUDGET FOR FY 2020, SUBJECT TO A
SECOND PUBLIC HEARING SCHEDULED ON WEDNESDAY,SEPTEMBER 25, 2019 AT 5:03 P.M.This Resolution is being heard pursuant to Sections 166.041
and 200.065 F.S.Inquiries may be directed to the Budget and Performance Improvement Office 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, 1y'Floor,City Hall, Miami Beach, Florida 33139.Copies of these items are available for public inspection
during normal business hours in the Office of the City Clerk, 1700 Convention Center Drive, 1"Floor,City Hall,Miami Beach,Florida 33139.This meeting,or
any item herein,may be continued,and under such circumstances,additional legal notice need not be provided.
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 alternate format,sign language interpreter(five-day notice required),information on access for persons with disabilities,and/or any
accommodation to review any document or participate in any City-sponsored proceedings,call 305.604.2489 and select 1 for English or 2 for Spanish,then
option 6:TTY users may call via 711 (Florida Relay Service).
Rafael E.Granada,City Clerk
City of Miami Beach
Ad 091119-05
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