Resolution 2022-32252 RESOLUTION NO. 2022-32252
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, SETTING 1) THE
PROPOSED OPERATING MILLAGE RATE; 2) THE REQUIRED
DEBT SERVICE MILLAGE RATE; 3) THE CALCULATED
"ROLLED-BACK" RATE;AND 4)THE DATE,TIME,AND PLACE
OF THE FIRST PUBLIC HEARING TO CONSIDER THE MILLAGE
RATES AND BUDGETS FOR FISCAL YEAR 2023; AND,
FURTHER,AUTHORIZING THE CITY MANAGER TO TRANSMIT
THIS INFORMATION TO THE MIAMI-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 set the millage rate and adopt an annual budget; and
WHEREAS, development of the Fiscal Year(FY)2023 budget began early in the year and
has included discussions with the Mayor and City Commission that included a review of priorities,
economic projections and their impacts on the overall budget, and preliminary projected revenues
and expenditures; and
WHEREAS, over the last several years, the City of Miami Beach has adopted budgets
that have provided tax and fee relief, while at the same time providing improved levels of services
that address the needs and priorities identified by the community; and
WHEREAS, maintaining and enhancing the City's priorities have become increasingly
more challenging due to increasing personnel costs that include pension-related costs and
operating costs; and
WHEREAS, the July 1, 2022 Certification of Taxable Value from the Miami-Dade County
Property Appraiser reflects an overall increase of 11.2 percent(%) in citywide property tax values
from the July 1, 2021 Certification of Taxable Value, a 0.8% increase in property tax values in the
City Center Redevelopment Area (RDA), a 11.6% increase in property tax values in the newly
created North Beach CRA, and a 8.5% increase in property tax values outside of the City Center
RDA and newly created North Beach CRA, which directly impacts General Fund property tax
revenues; and
WHEREAS, based on the July 1, 2022 Certification of Taxable Value from the Miami-
Dade County Property Appraiser, it is proposed that the City's Total General Operating millage
rate for FY 2023 be adjusted to 5.8155 mills (increase of 0.0529 mills), while the proposed Voted
Debt Service millage rate for FY 2023 be decreased by 0.0529 mills from the adopted FY 2022
rate of 0.2889 mills to 0.2360 mills, based on the overall increase of 11.2% in citywide property
tax values and realignment of the reduction in the required Voted Debt Service millage rate to the
Capital Renewal and Replacement (50%) and Pay-As-You-Go (50%) components of the Total
General Operating millage rate; and
WHEREAS, the City's Total General Operating millage rate proposed for FY 2023 of
5.8155 mills is comprised of a General millage that funds operating costs in the General Fund, a
Capital Pay-As-You-Go (PayGo) millage that funds General Fund capital projects, and a Capital
Renewal and Replacement(CRR)millage that provides a dedicated source of funding for renewal
and replacement projects that extend the useful life of General Fund capital assets; and
WHEREAS, the City's proposed FY 2023 Voted Debt Service millage rate decrease of
0.0529 mills, which decreases the Voted Debt Service millage rate from the adopted FY 2022
rate of 0.2889 to the proposed FY 2023 rate of 0.2360 mills, and is recommended to be transferred
to the Capital Renewal and Replacement (50%) and Pay-As-You-Go (50%) components of the
Total General Operating millage rate, is based on the total required debt service of$10.4 million
for the City's outstanding General Obligation (G.O.) Bonds, including the first tranche of the G.O.
Bonds approved by the voters on November 6, 2018; and
WHEREAS, the City of Miami Beach is required to notify the Miami-Dade County Property
Appraiser of the Proposed Millage Rates, the "rolled-back" rate, and the date, time, and place of
the first public hearing; and
WHEREAS, the January 1, 2021 citywide tax roll declined by approximately$778.8 million
between the certified July 1, 2021 valuation and the final July 1, 2022 valuation due to appeals
and adjustments, which is part of the reason the FY 2023 "rolled-back" rate is 5.1376 mills, or
0.6250 mills lower than the adopted FY 2022 Total General Operating millage rate of 5.7626 mills.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,that the following recommendations
of the Administration be and are hereby ratified for transmittal to the Miami-Dade County Property
Appraiser, as specified in Section 200.065, Florida Statutes:
1) Proposed Millage Rates for FY 2023:
General Millage 5.6636 mills
Capital Renewal & Replacement Millage 0.0499 mills
Pay-As-You-Go (PayGo) Millage 0.1020 mills
Total General Operating Millage 5.8155 mills
Voted Debt Service Millage 0.2360 mills
Total Combined Millage 6.0515 mills (same as last year)
2) "Rolled-Back" Rate 5.1376 mills
3) The first public hearing to consider the proposed millage rates and budgets for FY
2023 shall be held on Wednesday, September 14, 2022, at 5:01 P.M., in the City
Commission Chambers at 1700 Convention Center Drive, 3rd Floor, Miami Beach,
Florida 33139.
PASSED and ADOPTED, this 20th day of July, 2022.
ATTEST:
Dan Gelber, Mayor
JUL" 2 5 2022
741 ,,,,,,,,,,,, APPROVED AS TO
FORM &LANGUAGE
Rafael E. Granado, City Clerk B•E9.;4„1, &FflA EXECUTION
s,2j.•1111(ORP ORATED; ANO 71I% Z'L
^
a%yC G 1A- w C A(rney Date
.__ _,n _ , Agenda Item N
• Date MIAMI BEACH
City of Miami Beach,1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeochfl.gov
COMMISSION MEMORANDUM
TO: Honorable Mayor Dan Gelber a • embers of the City Commission
FROM: Alina T. Hudak, City Mana 1
DATE: July 20, 2022
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, SETTING 1) THE PROPOSED OPERATING MILLAGE RATE;2)
THE REQUIRED DEBT SERVICE MILLAGE RATE; 3) THE CALCULATED
"ROLLED-BACK" RATE; AND 4) THE DATE, TIME, AND PLACE OF THE FIRST
PUBLIC HEARING TO CONSIDER THE MILLAGE RATES AND BUDGETS FOR
FISCAL YEAR 2023; AND, FURTHER, AUTHORIZING THE CITY MANAGER TO
TRANSMIT THIS INFORMATION TO THE MIAMI-DADE COUNTY PROPERTY
APPRAISER IN THE FORM REQUIRED BY SECTION 200.065, FLORIDA
STATUTES
STRATEGIC PLAN SUPPORTED
Organizational Innovation—Ensure strong fiscal stewardship
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:
Proposed Millage Rates for Fiscal Year(FY)2023:
General Millage 5.6636 mills
Capital Renewal & Replacement Millage 0.0499 mills
Pay-As-You-Go(PayGo) Millage 0.1020 mills
Total General Operating Millage 5.8155 mills
Voted Debt Service Millage 0.2360.mills
Total Combined Millage 6.0515 mills (same as last year)
MILLAGE RATE ANALYSIS
There are two main components to the City's Total Combined millage rate: The Total General
Operating millage rate and the Voted Debt Service millage rate. The Total General Operating
millage rate, which is comprised of a General, a Capital Renewal and Replacement, and a Pay-
As-You-Go (PayGo) millage, funds General Fund operating and capital expenditures, while the
Voted Debt Service millage rate funds the annual required debt service for outstanding General
Obligation (G.O.) bonds.
FY 2023 Proposed Millage Rate
July 20, 2022
Page 2
The proposed Total General Operating millage rate for FY 2023 of 5.8155 mills provides funding
to offset increases for personnel costs, such as the annual required pension contributions; a 5
percent(%)Step increase for all Fraternal Order of Police(FOP)and International Association of
Fire Fighters (IAFF) personnel; a 0-3% performance-based merit increase for all non-FOP and
IAFF personnel; an increase in the City's health insurance premiums for active employees and
retirees; increases in other General Fund operating expenditures; an increase in Capital Renewal
and Replacement and PayGo funding for critical Capital needs; and future collective bargaining
agreements.
The "rolled-back" millage rate of 5.1376 for FY 2023 is the millage rate required to produce the
same level of property tax revenues in the General Fund for FY 2023 as anticipated to be received
in FY 2022.
Unfunded Capital Needs
It is important to note that the City's FY 2023 - FY 2027 capital improvement plan (CIP) reflects
$1.6 billion of unfunded capital needs.The FY 2023 unfunded Capital Renewal and Replacement
and PayGo projects total $7.2 million and $33.2 million, respectively. The FY 2022 dedicated
Capital Renewal and Replacement and PayGo millage rates of 0.0235 and 0.0755 would
generate $916,000 and $2.9 million. In previous years, the Capital Renewal and Replacement
and PayGo funds generated up to$3.5 million and$7.5 million.
The total required FY 2023 debt service payment of approximately $10.4 million, which is
comprised of the remaining debt service required for the City's 2011 G.O. Bonds of$2.3 million,
plus $8.1 million attributed to the new G.O. Bond Program that was approved by the voters on
November 6, 2018, requires the levy of a Voted Debt Service millage rate of 0.2360 mills. The
proposed Voted Debt Service millage rate for FY 2023 is 0.0529 mills less than the adopted FY
2022 Voted Debt Service millage rate of 0.2889 mills.
The Administration recommends realigning the required Voted Debt Service millage rate
reduction in FY 2023 of 0.0529 mills to the Capital Renewal and Replacement(50%)and PayGo
(50%) millage rates, resulting in an estimated increase in Capital Renewal and Replacement
revenue of $1 million and PayGo revenue of approximately $1 million in FY 2023. Overall, the
Total Combined millage rate for FY 2023 is proposed to remain the same at 6.0515 mills, as
summarized in the table below. If this recommendation is approved, the Administration
recommends funding currently unfunded urgent capital projects, such as the Historic City Hall
Renovation project, which is estimated to cost between $2 million and $4 million.
FY 2022 FY 2023 Increase/
Adopted Proposed (Decrease)
General 5.6636 5.6636 0.0000
Capital Renewal&Replacement 0.0235 0.0499 0.0264
Pay-As-You-Go(PayGo) 0.0755 0.1020 0.0265
_Total'General Operating Millage u _5 7626 5:8155 0415261.„L
Debt Service ~ _._0.2889 0.2360 (0.0529)
Total Combined Millage 6:0'515 6.0515, 0'.0000 -
FY 2023 Proposed Millage Rate
July 20, 2022
Page 3
ANALYSIS OF PROPERTY VALUES IN MIAMI BEACH
On July 1, 2022,.the City received the 2022 Certification of Taxable Value from the Miami-Dade
County Property Appraiser. Overall, as summarized below, the City's property values increased
approximately $4.6 billion, or 11.2%, from the 2021 Certified Taxable Values of $41.9 billion to
the 2022 Certified Taxable Values of$46.5 billion,which include a$3.9 billion, or 9.5%, increase
in existing property values and a $716.4 million increase in new construction values.
July 2021 July 2022 $
Certified Certified Change
Property Assessment,
Existing Values 41,866,674,794 45,828,304,965 3,961,630,171
New Construction 0 716,389,105 716,389,105
Total Citywide 41,866,674,794 46,544,694,070 4,678,019,276
City Center=RDA - 5'977864,104 '6023225;280 45,361',176
North-Beach CRA _; : . 0 1,585,511,;443 1,585,511,443
Citywide Total-Net of RDA and CRA 35,888,810,690 38,935,957,347 3,047,146,657
Property.Tax Revenue Projection 199,682;000 224,462,000 24,830,000:.
VALUE OF ONE MILL OF TAXABLE VALUE
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 every$1,000 of property
value. For the City of Miami Beach, the value for each mill for the proposed FY 2023 budget is
determined by the 2022 Certification of Taxable Value, which has been set at $46.5 million per
mill levied. Florida Statutes permit a discount of up to five percent for early payment discounts,
delinquencies, etc. Therefore, the 95% value of one mill citywide is approximately$44.2 million.
Excluding the Center City RDA and newly created North Beach CRA tax increment available to
the General Fund, the value of one mill is approximately$41.0 million, which at 95%to permit for
early payment discounts, delinquencies, etc., is approximately$39.0 million.
IMPACT OF PROPOSED MILLAGE LEVY IMPACT ON PROPERTY OWNERS
Homesteaded Properties
In 1992, voters approved an amendment to the Florida Constitution known as Amendment 10,
also known as 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 3.0% 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, 2022, the median value of homesteaded property in Miami
Beach is $240,385 while the average is $664,556. The impact of the City's proposed FY 2023
Total Combined millage rate of 6.0515 mills on the median homesteaded property within the City
of Miami Beach would be an increase of$119 while the impact to the average value homesteaded
property within the City of Miami Beach would be an increase of$578 as summarized in the table
below.
FY 2023 Proposed Millage Rate
July 20, 2022
Page 4
Homesteaded Properties
FY 2022 FY 2023
Median** Average** Median** Average**
Preliminary Taxable Value** $220,738 $569,192 $240,385 $664,556
City of Miami Beach
Operating $1,272 $3,280 $1,398 $3,865
Voted Debt 64 164 57 157
Total Miami Beach $1,336 $3,444 $1,455 $4,022
$Change in Taxes
Operating $126 $585
Voted Debt (7) (7)
Total Miami Beach $119 $578
'*Source:Miami-Dade County Property Appraiser's-2021 and 2022-average-median-homestead-
residential-values files
Historical Perspective
The table below outlines the City's millage rate trend. For FY 2023, the City's Total Combined
millaqe rate is proposed to remain flat at 6.0515 mills from the Total Combined millaqe rate
adopted for FY 2022.
Millage Rate History
9.0000
8.0000
7.0000
6.iIUliUUIUUIII
5.
• I
3. 11111111111111111
2.
1.
0. Y FY FY
2007 2008 2009 2010 2011 2012 2013 2014 2015 _2016 2017 2018 2019 2020 2021 2022 2023
oDebt Service Millage 0.2990 0.2415 0.2375 0.2568 0.2870 0.2884 0.2568 0.2529 0.2295 0.2031 0.1796 0.1664 0.1600 0.2933 0.3227 0.2889 0.2360
eOperating Millage 7.3740 5.6555 5.6555 5.6555 6.2155 6.1655 6.0909 5.8634 5.7942 5.7092 5.7092 5.7224 5.7288 5.7288 5.7288 5.7626 5.8155
Total Combined 7.6730 5.8970 5.8930 5.9123 6.5025 6.4539.6.3477 6.1163 6.0237 5.9123 5.8888 5.8888 5.8888 6.0221 6.0515 6.0515 6.0515
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, 2022), to advise the Miami-Dade County Property Appraiser of the proposed
FY 2023 Proposed Millage Rate
July 20, 2022
Page 5
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 2023.
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 2023 millage rate,the Mayor and City Commission may,at any time
prior to final adoption, lower the proposed millage rates. However, increasing the proposed
millage rate may only be accomplished by completing an expensive mailing and advertising
process to every property owner in the City of Miami Beach. The City's proposed millage rates,
as well as those of other taxing authorities, will be included in the Truth-in-Millage (TRIM)
statement sent to each property owner in the City of Miami Beach by the Miami Dade County
Property Appraiser on August 24, 2022.
MAXIMUM MILLAGE DETERMINATION
For FY 2023, the Total General Operating millage rate is proposed at 5.8155 mills,which reflects
an adjustment of 0.0529 mills based on the realignment of the FY 2023 Voted Debt Service
millage rate reduction of 0.0529 mills. Based on the July 1, 2022 Certification of Taxable Value
received from the Miami-Dade County Property Appraiser,the levy of 5.8155 mills would generate
approximately $226.5 million in General Fund property tax revenues, which is an increase of
approximately $26.9 million over the budgeted FY 2022 General Fund property tax revenues of
$199.6 million (net of the City Center RDA and newly created North Beach CRA).
Adoption of the proposed Total General Operating millage rate of 5.8155 mills for FY 2023
requires a majority approval (4 of 7 votes) by the Mayor and City Commission per the State of
Florida's Truth-in-Millage (TRIM)requirements.
By August 4, 2022, the. City Manager will certify the proposed millage rate to the Miami-Dade
County Property Appraiser. The proposed millage rate will be included in the TRIM notices that
will be mailed by the Property Appraiser on August 24, 2022. The purpose of the TRIM notice is
to notify property owners of how much their property taxes could potentially increase or decrease,
and which governmental entity is responsible for the taxes levied.
As such, the proposed millage rate effectively sets the "ceiling" for the millage rate during the
budget process because it cannot be increased without sending out a new TRIM notice to all
property owners in the City of Miami Beach. However, the millage rate can remain the same or
be decreased throughout the remainder of the budget process until the final millage rates are
adopted by the Mayor and City Commission at the second public hearing scheduled to be held
on Wednesday, September 28, 2022, at 5:01 p.m.
FIRST PUBLIC HEARING
The first public hearing on the proposed operating millage rate and budget for FY 2023 must be
held no later than 80 days,,or earlier than 65 days, 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 Miami-Dade County or the Miami-Dade County School Board for their public hearing;
2) If on a day other than Saturday, it must be held after 5:00 P.M.; and, 3) The principal taxing
authority(City of Miami Beach) must adopt its millage rate prior to adopting its annual.budget.
•
FY'2023 Proposed Millage Rate
July 20, 2022
Page 6
Based on these guidelines,the first public hearing must be held between September 3, 2022 and
September 18, 2022. The following dates are unavailable for the following reasons:
September 4 and 11 Sundays.
September 7 Miami-Dade County School Board 2nd Public Hearing
September 8 and 20 Miami-Dade County 1st and 2nd Public Hearing
Of the remaining days available, it is recommended that the first public hearing be held on
Wednesday, September 14, 2022, at 5:01 P.M., in the City Commission Chambers at 1700
Convention Center Drive, 3rd Floor, Miami Beach, Florida 33139.
ATH/JW/TOS
Resolutions-R7 N
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: July 20, 2022
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, SETTING 1) THE PROPOSED OPERATING
MILLAGE RATE; 2) THE REQUIRED DEBT SERVICE MILLAGE RATE; 3)
THE CALCULATED "ROLLED-BACK" RATE;AND,4)THE DATE, TIME,AND
PLACE OF THE FIRST PUBLIC HEARING TO CONSIDER THE MILLAGE
RATES AND BUDGETS FOR FISCAL YEAR 2023; AND, FURTHER,
AUTHORIZING THE CITY MANAGER TO TRANSMIT THIS INFORMATION
TO THE MIAMI-DADE COUNTY PROPERTY APPRAISER IN THE FORM
REQUIRED BY SECTION 200.065, FLORIDA STATUTES.
RECOMMENDATION
See attached Memorandum
SUPPORTING SURVEY DATA
N/A
FINANCIAL INFORMATION
N/A
Applicable Area
Citywide
Is this a"Residents Right Does this item utilize G.O.
to Know" item,pursuant to Bond Funds?
City Code Section 2-14?
Yes No
Strategic Connection
Organizational Innovation-Ensure strong fiscal stewardship.
Legislative Trackino
Office of Management and Budget
Page 1051 of 1502
ATTACHMENTS:
Description
❑ Memo Proposed FY 2023 Citywide Millage
❑ Resolution
Page 1052 of 1502
MiA,\/\ I BEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachli.gov
COMMISSION MEMORANDUM
TO: Honorable Mayor Dan Gelber and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: July 20, 2022
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, SETTING 1) THE PROPOSED OPERATING MILLAGE RATE; 2)
THE REQUIRED DEBT SERVICE MILLAGE RATE; 3) THE CALCULATED
"ROLLED-BACK" RATE; AND 4) THE DATE, TIME, AND PLACE OF THE FIRST
PUBLIC HEARING TO CONSIDER THE MILLAGE RATES AND BUDGETS FOR
FISCAL YEAR 2023; AND, FURTHER, AUTHORIZING THE CITY MANAGER TO
TRANSMIT THIS INFORMATION TO THE MIAMI-DADE COUNTY PROPERTY
APPRAISER IN THE FORM REQUIRED BY SECTION 200.065, FLORIDA
STATUTES
STRATEGIC PLAN SUPPORTED
Organizational Innovation — Ensure strong fiscal stewardship
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:
Proposed Millage Rates for Fiscal Year(FY)2023:
General Millage , 5.6636 mills
Capital Renewal & Replacement Millage 0.0235 mills
Pay-As-You-Go (PayGo) Millage 0.1284 mills
Total General Operating Millage 5.8155 mills
Voted Debt Service Millage 0.2360 mills
Total Combined Millage 6.0515 mills (same as last year)
MILLAGE RATE ANALYSIS
There are two main components to the City's Total Combined millage rate: The Total General
Operating millage rate and the Voted Debt Service millage rate. The Total General Operating
millage rate, which is comprised of a General, a Renewal and Replacement, and a Pay-As-You-
Go (PayGo) millage, funds General Fund operating and capital expenditures, while the Voted
Debt Service millage rate funds the annual required debt service for outstanding General
Obligation (G.O.)bonds.
Page 1053 of 1502
FY 2023 Proposed MWUage Rate
July 20, 2022
Page 2
The proposed Total General Operating millage rate for FY 2023 of 5.8155 mills provides funding
to offset increases for personnel costs, such as the annual required pension contributions; a 5
percent(%) Step increase for all Fraternal Order of Police (FOP) and International Association of
Fire Fighters (IAFF) personnel; a 0-3% performance-based merit increase for all non-FOP and
IAFF personnel; an increase in the City's health insurance premiums for active employees and
retirees; increases in other General Fund operating expenditures; an increase in PAYGO funding
for critical Capital needs; and future collective bargaining agreements.
•
The "rolled-back" millage rate of 5.1376 for FY 2023 is the millage rate required to produce the
same level of property tax revenues in the General Fund for FY 2023 as anticipated to be received
in FY 2022.
Unfunded Capital Needs
It is important to note that the City's FY 2023 - FY 2027 capital improvement plan (CIP) reflects
$1.6 billion of unfunded capital needs. The FY 2023 unfunded PAYGO projects total$33.2 million.
The FY 2022 dedicated PAYGO millage rate of 0.0755 would generate $2.9 million. In previous
years, the PAYGO fund generated up to $7.5 million.
The total required FY 2023 debt service payment of approximately $10.4 million, which is
comprised of the remaining debt service required for the City's 2011 G.O. Bonds of$2.3 million,
plus $8.1 million attributed to the new G.O. Bond Program that was approved by the voters on
November 6, 2018, requires the levy of a Voted Debt Service millage rate of 0.2360 mills. The
proposed Voted Debt Service millage rate for FY 2023 is 0.0529 mills less than the adopted FY
2022 Voted Debt Service millage rate of 0.2889 mills.
The Administration recommends realigning the required Voted Debt Service millage rate
reduction in FY 2023 of 0.0529 mills to the PAYGO millage rate, resulting in an estimated increase
in PAYGO revenue of approximately$2 million in FY 2023. Overall, the Total Combined millacie
rate for FY 2023 is proposed to remain the same at 6.0515 mills, as summarized in the table
below. If this is approved, the Administration recommends funding currently unfunded urgent
capital projects, such as the Historic City Hall Renovation project, which is estimated to cost
between $2 million and $4 million.
FY 2022 FY 2023 Increase/
Adopted Proposed (Decrease)
General 5.6636 5.6636 0.0000
Capital Renewal&Replacement 0.0235 0.0235 0.0000
Pay-As-You-Go(PayGo) 0.0755 0.1284 0.0529
Total General Operating Millage 5.7626 5.8155 0.0529
Debt Service 0.2889 0.2360 (0.0529)
Total Combined Millage 6.0515 6.0515 0.0000
ANALYSIS OF PROPERTY VALUES IN MIAMI BEACH
On July 1, 2022, the City received the 2022 Certification of Taxable Value from the Miami-Dade
County Property Appraiser. Overall, as summarized below, the City's property values increased
approximately $4.6 billion, or 11.2%, from the 2021 Certified Taxable Values of $41.9 billion to
the 2022 Certified Taxable Values of$46.5 billion,which include a$3.9 billion, or 9.5%, increase
in existing property values and a$716.4 million increase in news construction values.
Page 1054 of 1502
FY 2023 Proposed Millage Rate
July 20, 2022
Page 3
July 2021 July 2022 $
Certified Certified Change
Property Assessment
Existing Values 41,866,674,794 45,828,304,965 3,961,630,171
New Construction 0 716,389,105 716,389,105
Total Citywide 41,866,674,794 46,544,694,070 4,678,019,276
City Center RDA 5,977,864,104 6,023,225,280 45,361,176
North Beach CRA 0 1,585,511,443 1,585,511,443
Citywide Total-Net of RDA and CRA 35,888,810,690 38,935,957,347 3,047,146,657
Property Tax Revenue Projection 199,632,000 224,462,000 24,830,000
VALUE OF ONE MILL OF TAXABLE VALUE
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 every$1,000 of property
value. For the City of Miami Beach, the value for each mill for the proposed FY 2023 budget is
determined by the 2022 Certification of Taxable Value, which has been set at $46.5 million per
mill levied. Florida Statutes permit a discount of up to five percent for early payment discounts,
delinquencies, etc. Therefore, the 95% value of one mill citywide is approximately $44.2 million.
Excluding the Center City RDA and newly created North Beach CRA tax increment available to
the General Fund, the value of one mill is approximately$41.0 million, which at 95%to permit for
early payment discounts, delinquencies, etc. is approximately$39.0 million.
IMPACT OF PROPOSED MILLAGE LEVY IMPACT ON PROPERTY OWNERS
Homesteaded Properties •
In 1992, voters approved an amendment to the Florida Constitution known as Amendment 10,
also known as 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 3.0% 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, 2022,the median value of homesteaded property in Miami
Beach is $240,385 while the average is $664,556. The impact of the City's proposed FY 2023
Total Combined millage rate of 6.0515 mills on the median homesteaded property within the City
of Miami Beach would be an increase of$119 while the impact to the average value homesteaded
property within the City of Miami Beach would be an increase of$578 as summarized in the table
below.
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FY 2023 Proposed Millage Rate
July 20, 2022
Page 4
Homesteaded Properties
FY 2022 FY 2023
Median** Average** Median" Average"
Preliminary Taxable Value** $220,738 $569,192 $240,385 $664,556
City of Miami Beach
Operating $ 1,272 $3,280 $1,398 $3,865
Voted Debt 64 164 57 157
Total Miami Beach $1,336 $3,444 $1,455 $4,022
$Change in Taxes
Operating $ 126 $585
Voted Debt (7) (7)
Total Miami Beach $119 $578
**Source:Miami-Dade County Property Appraiser's-2021 and 2022-average-median-homestead-
residential-values files
Historical Perspective
The table below outlines the City's millage rate trend. For FY 2023, the City's Total Combined
millage rate is proposed to remain flat at 6.0515 mills from the Total Combined millage rate
adopted for FY 2022.
Millage Rate History
9.0000
8.0000
7.0000
6.0000
5.0000
4.0000
C
m
rn
3.0000
2.0000
1.0000
0.0000 FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Debt Service Millage 0.2990 0.2415 0.2375 0.2568 0.2870 0.2884 0.2568 0.2529 0.2295 0.2031 0.1796 0.1664 0.1600 0.2933 0.3227 0.2889 0.2360
■Operating Millage 7.3740 5.6555 5.6555 5.6555 6.2155 6.1655 6.0909 5.8634 5.7942 5.7092 5.7092 5.7224 5.7288 5.7288 5.7288 5.7626 5.8155
Total Combined 7.6730 5.8970 5.8930 5.9123 6.5025 6.4539 6.3477 6.1163 6.0237 5.9123 5.8888 5.8888 5.8888 6.0221 6.0515 6.0515 6.0515
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, 2022), to advise the Miami-Dade County Property Appraiser of the proposed
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FY 2023 Proposed Millage Rate
July 20, 2022
Page 5
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 2023.
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 2023 millage rate,the Mayor and City Commission may, at any time
prior to final adoption, lower the proposed millage rates. However, increasing the proposed
millage rate may only be accomplished by completing an expensive mailing and advertising
process to every property owner in the City of Miami Beach. The City's proposed millage rates,
as well as those of other taxing authorities, will be included in the Truth-in-Millage (TRIM)
statement sent to each property owner in the City of Miami Beach by the Miami Dade County
Property Appraiser on August 24, 2022.
MAXIMUM MILLAGE DETERMINATION
For FY 2023, the Total General Operating millage rate is proposed at 5.8155 mills, which reflects
an adjustment of 0.0529 mills based on the realignment of the FY 2023 Voted Debt Service
millage rate reduction of 0.0529 mills. Based on the July 1, 2022 Certification of Taxable Value
received from the Miami-Dade County Property Appraiser,the levy of 5.8155 mills would generate
approximately $226.5 million in General Fund property tax revenues, which is an increase of
approximately $24.8 million over the budgeted FY 2022 General Fund property tax revenues of
$199.6 million (net of the City Center RDA and newly created North Beach CRA).
Adoption of the proposed Total General Operating millage rate of 5.8155 mills for FY 2023
requires a majority approval (4 of 7 votes) by the Mayor and City Commission per the State of
Florida's Truth-in-Millage (TRIM) requirements.
By August 4, 2022, the City Manager will certify the proposed millage rate to the Miami-Dade
County Property Appraiser. The proposed millage rate will be included in the TRIM notices that
will be mailed by the Property Appraiser on August 24, 2022. The purpose of the TRIM notice is
to notify property owners of how much their property taxes could potentially increase or decrease,
and which governmental entity is responsible for the taxes levied.
As such, the proposed millage rate effectively sets the "ceiling" for the millage rate during the
budget process because it cannot be increased without sending out a new TRIM notice to all
property owners in the City of Miami Beach. However, the millage rate can remain the same or
be decreased throughout the remainder of the budget process until the final millage rates are
adopted by the Mayor and City Commission at the second public hearing scheduled to be held
on Wednesday, September 28, 2022, at 5:01 p.m.
FIRST PUBLIC HEARING
The first public hearing on the proposed operating millage rate and budget for FY 2023 must be
held no later than 80 days, or earlier than 65 days, 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 Miami-Dade County or the Miami-Dade County School Board for their public hearing;
2) If on a day other than Saturday, it must be held after 5:00 P.M.; and, 3) The principal taxing
authority(City of Miami Beach) must adopt its millage rate prior to adopting its annual budget.
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FY 2023 Proposed Millage Rate
July 20, 2022
Page 6
Based on these guidelines,the first public hearing must be held between September 3, 2022 and
September 18, 2022. The following dates are unavailable for the following reasons:
September 4 and 11 Sundays
September 7 Miami-Dade County School Board 2"d Public Hearing
September 8 and 20 Miami-Dade County 15t and 2nd Public Hearing
Of the remaining days available, it is recommended that the first public hearing be held on
Wednesday, September 14, 2022, at 5:01 P.M., in the City Commission Chambers at 1700
Convention Center Drive, 3rd Floor, Miami Beach, Florida 33139.
ATH/JW/TOS
•
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