RESOLUTION 92-20588 RESOLUTION NO. 92-20588
A RESOLUTION ADOPTING THE TENTATIVE AD VALOREM
MILLAGE OF 9. 302 MILLS FOR GENERAL OPERATING
PURPOSES WHICH IS 3. 52% LESSER THAN THE
CALCULATED "ROLLED-BACK" RATE OF 9 . 642 ; AND
2 .545 MILLS FOR DEBT SERVICE FOR THE CITY OF
MIAMI BEACH, FLORIDA, FOR FISCAL YEAR 1992/93
SUBJECT TO A SECOND PUBLIC HEARING AT 5: 01
P.M. , WEDNESDAY, SEPTEMBER 23, 1992 .
BE IT DULY RESOLVED BY THE CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, that, pursuant to Florida Statutes 200. 065
there is hereby, levied a tax for the Fiscal Year 1992/93 , 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 9 . 302
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 herein reflected is 3 . 52%
lesser than the calculated "rolled-back" rate
of 9 . 642 .
(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 2 . 545 mills.
BE IT FURTHER RESOLVED BY THE CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, that the tentative adopted millage rates for
the City of Miami Beach, Florida for FY 1992/93 is subject to a
second and final public hearing at 5: 01 pm, Wednesday, September
23 , 1992 in the City Commission Chambers, City Hall , 1700
Convention Center Drive, Miami Beach.
PASSED and ADOPTED this 10th d0 ► of September, 199 . .
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Attest by:
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City Clerk
Form Approved:
City Attorney
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CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010
FAX: (305) 673-7782
COMMISSION MEMORANDUM
DATE: September 10, 1992
TO: Mayor Seymour Gelber and
Members of the City Commission
FROM: Roger M. CarltiU
City Manager Z
SUBJECT: A RESOLUTION ADOPTING: 1)THE TENTATIVE AD VALOREM OPERATING MILLAGE
RATE OF 9.302 MILLS WHICH IS 3.52% LESSER THAN THE ROLLED BACK RATE OF
9.642 MILLS; 2) THE DEBT SERVICE MILLAGE RATE OF 2.545 MILLS; 3) AND,
SETTING 5:01 P.M., WEDNESDAY, SEPTEMBER 23, 1992 FOR THE SECOND PUBLIC
HEARING TO CONSIDER THE MILLAGE RATE AND BUDGET FOR FISCAL YEAR
1992/93.
RECOMMENDATION
The Administration recommends that the City Commission adopt the
attached resolution which sets the following:
1) Tentatively adopted millage rates for FY 1992/93
General Operating 9 . 302 mills ( 9 . 743 last year)
Debt Service 2 . 545 mills ( 2 . 200 last year)
Total 11. 847 mills ( 11 . 943 last year)
2) The tentatively adopted millage rate of 9 . 302 mills is 3 . 52%
lesser than the "rolled back" rate of 9 . 642 mills.
3) The second public hearing to consider the proposed millage
rates and budgets for FY 1992/93 shall be at 5 : 01 p.m. ,
Wednesday, September 23 , 1992 in the City Commission Chambers,
City Hall , 1700 Convention Center Drive.
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 1992/93
operating purposes.
This is accomplished by adopting a resolution that includes
the percent 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.
Further, this resolution must be read aloud, in its entirety,
prior to adoption.
2 . Adopt a tentative general operating budget for FY 1992/93 .
Also included, are budgets for the Enterprise and Internal
Service Funds. This is accomplished by adopting the attached
companion resolution.
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Both the millage and budget resolutions must be adopted again after
a second and final public hearing.
AGENDA R1-
ITEM _
DATE 9 - /0-
Operating and Debt Service Millage
September 10, 1992
Page - 2 -
ANALYSIS
On July 1, 1992 , the City received the "1992 Certification of
Taxable Value" from the Dade County Property Appraiser's Office
stating that the taxable value for the City of Miami Beach is
$3 , 969 , 036, 299 . This amount includes new construction of
$65 , 024 , 290 and an increase in the value of existing properties of
$40, 414 , 404 or 1. 05% .
The value of the mill has gone from $3 , 863 , 598 in FY 1991/92 to
$3 , 969 , 036 or a 2 . 7% increase of $105, 438 per mill . The increase
of $105, 438 consists of $65 , 024 (1 . 7%) for new construction and
$40, 414 (1%) for existing values.
For budgetary purposes, this represents an eight-tenths of one
percent (0 . 8%) growth over the certified value of $3 , 937 , 433 , 104
from the same time last year. The actual growth for the entire
City from the 1991 final value to the 1992 certified value is 2 . 7% .
DEBT SERVICE MILLAGE
To return the City to fiscal health, it is necessary to make the
Debt Service Fund fully self-supporting by millage levies. This
transition should occur within two years to maintain our bond
rating of "A" with Moody's and "A" with Standard and Poors. The
debt service payments for FY 1992/93 are $11, 797 , 040 and would
require a tax rate of 3 . 064 mills or a significant increase of
0. 864 mills from the current year's value of 2 . 200 mills if the
return to good financial management occurred in a single year.
Further, assuming a small increase in values for FY 1993/94 , the
subsequent requirement would then be 2 . 972 mills. Achieving the
return to fiscal health for the Debt Service Fund in one year could
prove burdensome to our taxpayers.
For next year, FY 92/93 , the two-year approach still requires a
contribution from Debt Service Fund retained earnings. At this
time it is projected that approximately $2 , 000, 000 will be
available in debt service retained earnings next fiscal year. This
amount makes it possible to limit the increase in the tax rate to
0. 345 mills (from 2 . 200 to 2 . 545 mills) and would provide
$9 , 978 , 161 in tax proceeds that would be supplemented with
$1, 998 , 879 from retained earnings for the total requirement of
$11, 797 , 040 .
Under the stated assumptions, the Debt Service millage for FY 93/94
would require another planned increase of 0. 427 mills to 2 . 907
mills to make the Debt Service Fund fully self-supporting at the
end of two years.
OPERATING MILLAGE
Consistent with the directive from the City Commission to downsize
and reduce the cost of doing business, the administration is
recommending an operating millage rate of 9 . 302 mills.
The proposed rate of 9. 302 mills represents a decrease of 0 . 441
mills or 4 .5% from the prior year's value of 9.743 . Alternately,
the decrease is 3 . 52% from the rolled back rate of 9. 642 mills.
This decrease is the largest decrease since the enactment of the
Truth In Millage (TRIM) legislation; last year the millage rate
decreased by 0 . 223 mills. It should be understood that the
millage rate could be established at the rolled back rate without
advertising a tax increase. This budget recommends a millage rate
well below the rolled back rate.
The proposed rate of 9 . 302 mills will generate tax proceeds
$35 , 812 , 374 to the operating fund. This amount is $1, 399 , 163 less
than the prior year's levy of $37 , 211, 537 and is a 3 . 7% decrease in
Operating and Debt Service Millage
September 10, 1992
Page - 3 -
property tax income over the previous year. This will be the
largest operating tax levy decrease in the history of Miami Beach;
also, it is the second time that the operating tax levy has
decreased in recent times. The first was in FY 1985/86 , when the
millage rate remained the same, 8 . 554 mills, and the levy decreased
by $477 , 553 or 1. 8% over the prior year's levy of $26 , 903 , 073 .
Tax increment proceeds to the Miami Beach Redevelopment Agency will
be similarly affected by the reduced millage rate and the decline
in assessed property value. Tax proceeds to the Agency will
decline by $82 , 234 or 7 . 7% from $1, 069, 851 to $987 , 617 .
MILLAGE SUMMARY
Illustrated below, is a comparison of the millage rates and tax
levies for FY 1991/92 and FY 1992/93 .
FY 1991/92 FY 1992/93 Increase/(Decrease)
Tax Rate Tax Levy Tax Rate Tax Levy Tax Rate Tax Levy
Operating 9.743 $37,211,537 9.302 $35,812,374 (0.441) $(1,399,163)
Debt Service 2.200 8,402,482 2.545 9,798,161 0.345 1,395,679
TOTAL 11.943 $45,614,019 11.847 $45,610,535 (0.096) $ (3,484)
You will note that the total tax rate has decreased by 0. 096 mills
from the prior year and that there is a significant difference in
the composition of the total tax rate. The discretionary operating
millage will decrease by 0. 441 mills. If the City of Miami Beach
is to return to fiscal health there is no discretion in the voted
millage for debt service.
Total tax levy (amount collected in dollars for both operating and
debt services) to the City will decrease by $3 , 484 .
ADDITIONAL DISCUSSION
As discussed on September 2 , 1992 , Hurricane Andrew has had a
significant impact on the proposal to return the City of Miami
Beach to fiscal health. While the City Commission adopted many of
the proposed ordinances (on first reading) and resolutions
necessary to return the City to fiscal health, certain others will
be delayed to support the Hurricane Andrew recovery efforts.
It is estimated that the fiscal impact of the delayed items is
approximately $800, 000 for FY 1992/93 , assuming that the delay does
not exceed 60 days. This amount may be lessened by options being
reviewed by staff that will be presented at the September 10, 1992
budget hearing.
Two options present themselves at this time. The first is to
utilize the amount ($750, 000) earmarked for increasing fund
balance. The second option is to increase the proposed millage
rate by 0. 208 mills from 9 . 302 mills to 9 . 510 mills. The millage
rate of 9 . 510 mills will still be below the "rolled back" rate of
9 . 642 mills. Special procedures, due to Hurricane Andrew, for
increasing the proposed millage rate are still being codified by
the Florida Department of Revenue for authorization by the
Governor. It is the goal of the Administration to reduce or
eliminate the need for utilization of either option through
alternatives that are currently being reviewed.
The first public hearing to consider the millage rate and proposed
budget for FY 1992/93 remains scheduled for 5 : 01 p.m. , September
10, 1992 in the Commission Chamber.
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Operating and Debt Service Millage
September 10, 1992
Page - 4 -
SECOND PUBLIC HEARING
The second public hearing on the tentatively adopted millage rate
and budget for fiscal year 1992/93 must be held no later than 15
days after the first public hearing.
Dates available for the second public hearing are:
Wednesday September 16, 1992
Monday September 21, 1992
Tuesday September 22 , 1992
Wednesday September 23 , 1992
Thursday September 24 , 1992
It is recommended that the second public hearing be set for 5 : 01
p.m. , Wednesday, September 23 , 1992 in the City Commission
Chambers, City Hall , 1700 Convention Center Drive.
RMC: PFL:me
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ORIGINAL
RESOLUTION NO. 92-20588
Adopting the tentative ad valorem milia
of 9.302 mills forgeneral g
operating
purposes which is 3.52% lesser than the
claculated "Rolled-Back" rate of 9.642;
and 2.545 mills for debt service for the
City of Miami Beach, Florida, for fiscal
year 1992/93 subject to a secondP ublic
hearing at 5:01 p.m. , Wednesday,
September 23, 1992.
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