Resolution 2023-32784RESOLUTION NO. 2023-32784
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ADOPTING: 1) THE FINAL AD VALOREM MILLAGE
OF 5.8155 MILLS FOR FISCAL YEAR 2024 FOR GENERAL OPERATING
PURPOSES, WHICH IS TWELVE AND FIVE TENTHS PERCENT (12.5%) MORE
THAN THE "ROLLED -BACK" RATE OF 5.1681 MILLS; AND 2) THE DEBT
SERVICE MILLAGE RATE OF 0.3326 MILLS.
WHEREAS, on July 26, 2023, the Mayor and City Commission adopted Resolution No.
2023-32717, which set the proposed Fiscal Year (FY) 2024 general operating millage rate at
5.8155 mills (excluding debt service) for general operating purposes and is the same as the
adopted FY 2023 general operating millage rate, and the proposed FY 2024 debt service millage
at 0.3326 mills, which is an increase of 0.0966 mills from the adopted FY 2023 debt service
millage rate of 0.2360 mills that is necessary to fund the required debt service for the Series 2019
General Obligation (G.O.) Bonds, as well as the new Series 2023A&B Arts and Culture G.O.
Bonds, that were approved by the voters on November 6, 2018 and November 8, 2022,
respectively; and
WHEREAS, the FY 2024 general operating: millage rate of 5.8155 mills is comprised of a
General millage rate of 5.6636 mills that funds operating expenditures in the General Fund, a
Capital Renewal and Replacement (CRR) millage rate of 0.0499 mills 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 (PayGo) millage rate of 0.1020 mills that provides a
dedicated source of funding for General Fund capital projects; and
WHEREAS, at the first public hearing on September 13, 2023, in accordance with Section
200.065, Florida Statutes, the Mayor and City Commission tentatively adopted the operating
millage rate of 5.8155 mills for general operating purposes, and debt service millage rate of 0.3326
mills, for FY 2024; and
WHEREAS, Section 200.065, Florida Statutes, requires that at the conclusion of the
second public hearing on the City's proposed tax rate and budget, the City Commission: 1) adopt
a final ad valorem millage rate for FY 2024 general operating purposes; and 2) adopt the required
debt service millage rate for FY 2024; this is accomplished by adopting a Resolution which
includes the percentage increase or decrease over the "rolled -back" rate.
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 2024
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 .5.8155 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 twelve and five -tenths percent (12.5%) more
than the "Rolled -back" rate of 5.1681 mills.
(b) For the purpose of providing payment on the principal and interest
portions of outstanding G.O. Bond debt and miscellaneous debt service
expenditures, the rate assigned amounts to 0.3326 mills.
PASSED AND ADOPTED this 27th day of September 2023.
ATTEST:
SEP 2 " 2023 Dan Gelber, Mayor
Rafael E. Granado, City Clerk
H,C0RP 0RbiED
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
City Attomey P fl-L
2
Date
Resolutions - R7 A
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: September 27, 2023
5:01 p.m. Second Reading Public Hearing
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ADOPTING: 1) THE FINAL AD VALOREM
MILLAGE OF 5.8155 MILLS FOR FISCAL YEAR 2024 FOR GENERAL
OPERATING PURPOSES, WHICH IS TWELVE AND FIVE TENTHS
PERCENT (12.5%) MORE THAN THE "ROLLED -BACK" RATE OF 5.1681
MILLS; AND 2) THE DEBT SERVICE MILLAGE RATE OF 0.3326 MILLS.
RECOMMENDATION
See attached Memorandum.
SUPPORTING SURVEY DATA
See attached Memorandum.
FINANCIAL INFORMATION
See attached Memorandum.
Applicable Area
Citywide
No
Strategic Connection
Organizational Innovation- Ensure strong fiscal stewardship.
Legislative Trackina
Office of Management and Budget
ATTACHMENTS:
Description
Page 86 of 550
Memo - FY 2024 Final Citywide Millage
Resolution
Page 87 of 550
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachf.gov
COMMISSION MEMORANDUM
TO: Honorable Mayor Dan Gelber and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: September 27, 2023
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, ADOPTING: 1) THE FINAL AD VALOREM MILLAGE OF 5.8155
MILLS FOR FISCAL YEAR 2024 FOR GENERAL OPERATING PURPOSES, WHICH
IS TWELVE AND FIVE TENTHS PERCENT (12.5%) MORE THAN THE "ROLLED -
BACK" RATE OF 5.1681 MILLS; AND 2) THE DEBT SERVICE MILLAGE RATE OF
0.3326 MILLS.
STRATEGIC PLAN SUPPORTED
Organizational Innovation — Ensure strong fiscal stewardship
ADMINISTRATION RECOMMENDATION
The Administration recommends that the Mayor and City Commission adopt the Resolution, which
authorizes the City Manager to transmit the following information to the Miami -Dade County
Property Appraiser:
1) The Final Millage Rates for Fiscal Year (FY) 2024:
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 (same as last year)
Voted Debt Service Millage 0.3326 mills (0.0966 increase over last year)
Total Combined Millage 6.1481 mills
The first public hearing on the tentative millage rates for FY 2024 was held on September 13,
2023. The millage rates herein are those which were tentatively adopted at the first public hearing
on that day.
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:
Page 88 of 550
FY 2024 Final Millage Rates
September 27, 2023
Page 2
Adopt a final ad valorem millage rate for FY 2024 general operating purposes. This is
accomplished by adopting a Resolution which includes the percentage increase or
decrease over the "rolled -back" rate, and the required FY 2024 debt service millage rate.
State statute requires that only the title be read aloud.
Adopt a final general operating budget for FY 2024, which also includes the budgets for
Enterprise, Internal Service, Special Revenue, and G.O. Bond Debt Service Funds, as
well as the City's Tax Increment Financing (TIF) portion of the City Center RDA and North
Beach CRA. This is accomplished by adopting a companion Resolution (see
accompanying City Budget Agenda Item).
PROPERTY VALUES
On July 1, 2023, the City received the 2023 Certification of Taxable Value from the Miami -Dade
County Property Appraiser. As summarized below, the City's overall property values increased
approximately $5.0 billion, or 10.8%, from the 2022 Certification of Taxable Value of $46.5 billion
to the 2023 Certification of Taxable Value of $51.5 billion, which included a $4.8 billion, or 10.3%,
increase in the City's existing values and a $0.2 billion increase in new construction values.
Existing Values
New Construction
Total Citywide
$46,544,694,070
0
$51,346,874,323 $4,802,180,253
213,897,907 213,897,907
10.3%
100.0%
$46,544,694,070
$51,660,772,230 $5,016,078,160
10.8%
CRY testier RDA
NOMBeech CRA
$6= 225 Zd0
1,565,511,443
$6,186AM922
1,730,586,116
$164,801,842
145,046,673
2.7%
6.1%
Total Citywide — Net of RDA & CRA
$38,935,957,347
$43,642,187,192
$4,706,229,845 j
12.1%
MILLAGE RATE
There are two main components to the City's Total Combined millage rate, which are 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 debt service required for the City's
outstanding General Obligation (G.O.) bonds.
The Total General Operating millage rate for FY 2024 of 5.8155 mills provides funding to offset
increases in 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) positions, a 0-3% performance -based merit increase for all non -FOP and IAFF positions,
an increase in the City's health insurance premiums for active employees and retirees, as well as
increases in other General Fund operating expenditures.
The Voted Debt Service millage rate of 0.3326 mills provides funding of the annual debt service
required for the Series 2019 G.O. Bonds, as well as the new Series 2023A&B Arts and Culture
G.O. Bonds, that were approved by the voters on November 6, 2018 and November 8, 2022,
Page 89 of 550
FY 2024 Final Millage Rates
September 27, 2023
Page 3
respectively, through the assessment, levy, and collection of ad -valorem tax on all property within
the City.
On November 6, 2018, the City of Miami Beach voters approved the issuance of a not to exceed
amount of $439.0 million in G.O. bonds 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 issuance of these G.O. bonds is
currently divided into three tranches, as adopted by the City Commission. This will result in lower
initial property taxes paid by property owners and increases in property taxes required to fund
these G.O. bonds approved by the City of Miami Beach voters in 2018 to be phased in over time.
To date, Tranche 1 (Series 2019), which totals approximately $152.5 million, has been issued
with the remaining balance of $286.5 million to be issued in future fiscal years.
On November 8, 2022, the City of Miami Beach voters approved the issuance of a not to exceed
amount of $159.0 million in Arts and Culture G.O. bonds to improve facilities for resiliency of arts
and cultural institutions throughout the City, including museums, performance venues, artistic
playgrounds, senior/cultural centers, botanical garden, aquatic sculpture park, and related
artist/workforce housing. The issuance of these Arts and Culture G.O. bonds is currently divided
into two tranches, as adopted by the City Commission. This will result in lower initial property
taxes paid by property owners and increases in property taxes required to fund the Arts and
Culture G.O. bonds approved by the City of Miami Beach voters in 2022 to be phased in over
time. To date, Tranche 1 (Series 2023A&B), which totals approximately $101.7 million, has been
issued with the remaining balance of $57.3 million to be issued in future fiscal years.
The Voted Debt Service millage rate for FY 2024 of 0.3326 mills is 0.0966 mills more than the FY
2023 Voted Debt Service millage rate of 0.2360 mills and funds the required $16.3 million payment
for FY 2024 that is comprised of the annual debt service for the Series 2019 G.O. Bonds and the
annual debt service for the new Series 2023A&B Arts and Culture G.O. Bonds.
IMPACT OF 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.
Page 90 of 550
FY 2024 Final Millage Rates
September 27, 2023
Page 4
Based on last year's values from the Miami -Dade County Property Appraiser (as of July 1, 2022),
the median homesteaded property value in the City of Miami Beach was $240,385 while the
average homesteaded property value was $664,556. For an existinq homesteaded property in
the City of Miami Beach that was not sold and/or did not have any improvements or additions
completed in the last year, the impact of the City's FY 2024 Total Combined millage rate of 6,1481
mills would result in an increase of approximately $67 for a median value homesteaded property
while the impact for an average value homesteaded property would be $187 pursuant to the SOH
Cap.
City of Miami Beach
Operating $1,398
$3,865
$1,440
$3,981
Voted Debt 57
157
82
228
Ta1daftwit h
$1,455
*114M
SIAM
$44M
$ Change in Taxes
Operating
$42
$116
Voted Debt
25
71
TOWN 11 9Neh
i8T
$W
'Source. Miami -Dade County Property Appraiser's — 2022 average -median -homestead -residential -
values files
Impact on Non -Homesteaded Properties
The annual increase in the assessed value of a non -homesteaded property is capped at 10.0%
(excluding the School Board portion). While the average citywide increase in property values is
10.8%, the value of individual properties may increase up to, but not more than 10.0% (excluding
the School Board portion of the property tax bill). However, an individual property owner may see
an increase of more than 10.0% if there is a change in ownership of a capped property resulting
in a reset of the cap. Another factor, if applicable, would be the value of new construction which
can contribute to a property value increase of more than 10.0%.
OVERLAPPING JURISDICTIONAL OPERATING AND DEBT SERVICE MILLAGE RATES
Property owners in the City of Miami Beach 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. For
FY 2024, these taxing authorities represent 67.5% of a Miami Beach property owner's tax bill.
The FY 2024 countywide tax rate proposed for Miami -Dade County decreased by 0.0462 mills
from 4.6202 to 4.5740 mills; the library tax rate remains flat at 0.2812 mills; and the debt service
millage decreased by 0.0498 mills from 0.4853 to 0.4355 mills. The tax rate for the Miami -Dade
School Board increased by 0.1100 mills from 6.5890 to 6.6990 mills. The Children's Trust tax rate
remained flat at 0.5000 mills. Combined, the millage rates for the South Florida Water
Management District, Okeechobee Basin, Everglades Project, and Florida Inland Navigational
District decreased by 0.0032 mills from 0.2621 to 0.2589 mills.
Page 91 of 550
FY 2024 Final Millage Rates
September 27, 2023
Page 5
Based on the rates proposed for FY 2024, the Miami Beach portion of the tax bill is approximately
32.5% of the total tax bill. It is important to note that Miami -Dade County's total FY 2024 millage
rate of 5.2907 mills is 1.0953 mills, or 17.2%, less than Miami -Dade County's total FY 2007
millage rate of 6.3860 mills, as compared to the City's total FY 2024 millage rate of 6,1481 mills
that is 1.5249 mills, or 19.9%, less than the City's total FY 2007 millage rate of 7.6730 mills
Further, the FY 2024 School Board millage of 6.6990 mills is 1.4060 mills, or 17.3%, less than 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 proposed rate changes is provided in the following table.
% of
OVERLAPPING Adopted Adopted
Variance Variance % of
Proposed
TAX MILLAGE FY 00
. from from FY 2024
Total
FY 2007 FY 2023 Total
p4► of = Beach
General Operating 7.1920 30.8°% 5.6636
5.6636 (1.5284) 0.0000 30.0°%
Renewal& Replacement 0.1820 0.8°% 0.0499
0.0499 (0,1321) 0.0000 0.3°%
Pay -As -You -Go Capital 0.0000 0.0°% 0.1020
0.1020 0.1020 0.0000 0.5°%
OpwathV1101ap
7.3740
31.89E
UM
8.01"
(IJUM
lA000 So.t9c
Voted Debt Service
0.2990
1.3°%
0.2360
0.3326
0.0336
0.0966 1.8°%
sub6 w
TAt730
3Z r1c
LMI
ILIM
(1
LOMIt
3Zi%
mww Do" Cwrdy (
Countywide 5.6150
24.1°%
4.6202
4.5740
(1.0410)
(0.0462)
I
24.2°%
Library 0.4860
2.1°%
0.2812
0.2812
(0.2048)
0.0000
1.5°%
Debt Service 0.2850
1.2°%
0.4853
0.4355
0.1505
(0.0498)
2.3°%
Sabo"
ti.Z0i0
Z►A%
L3067
L2007
(1.0083j
RAW
=A%
School Boats 8.1060
34.8%
6.6890
6.6990
(1.4060)
0.1100 35.6%
Children's Trust 0.4223
1.8°%
0.5000
0.5000
0.0777
0.0000 2.6°%
Other 0.7355
3.2°%
0.2621
0.2589
(0.4766)
(0.0032) 1.4°%
TOM 23 ma
IOLS%
%7M
1%M07
(um)I L1074
1i0.0'�
IMPACT OF COMBINED TAX RATES OF OVERLAPPING JURISDICTIONS ON
HOMESTEADED PROPERTIES
Based on last year's values from the Miami -Dade County Property Appraiser (as of July 1, 2022),
the median homesteaded property value in the City of Miami Beach was $240,385 while the
average homesteaded property value was $664,556. Applying the total combined millage rates
for FY 2024 to the median and average taxable values for an existing homesteaded property in
the City of Miami Beach that was not sold and/or did not have any improvements or additions
completed in the last year results in a combined property tax increase of approximately $162 for
the median and $447 for the average homesteaded residential tax bill in the City of Miami Beach.
Median homesteaded properties would pay approximately $4,679 per homesteaded property,
combined, for all taxing jurisdictions, while the property taxes for average homesteaded properties
would be approximately $12,934 per homesteaded property. Of all the taxing jurisdictions, the
highest component is the Miami -Dade School Board at $1,659 for a median valued homesteaded
property and $4,585 for an average valued homesteaded property in the City of Miami Beach.
Page 92 of 550
FY 2024 Final Millage Rates
September 27, 2023
Page 6
The following table provides a summary of changes in the property taxes levied for an existing
homesteaded property that has not been sold and/or had any improvements or additions
completed in the last year using the tax rates proposed for FY 2024 by jurisdiction.
City of Miami Beach
Operating $1,398 $3.865
$1,440
$3,981
Voted Debt 57 157
82
228
Todd 1fi%Wh
$IAW
$ 4.OYt
iIAU
$4X8
Miami Dade County
$1,295
$3,580
$1,310
$3,621
School Board
1,584
4,379
1,659
4,585
Other
183
506
188
519
ToW Coxd*wd
$.kw
='1?.4i7
i4,i7Ti
N3.p4
Change in Taxes
City of Miami Beach
Operating $ 22 $116
Voted Debt 25 71
I Told i111kmi Bach $97 $187
Miami Dade County $15 $41
School Board 75 206
Other 5 13"
Totid Con kwd
=1fZ
:4q
'Source: Miami -Dade County Property Appraisers — 2022 average -median -homestead -residential -
values files
As with the City of Miami Beach millage rates, the impacts of the combined jurisdictional millage
rates for non -homesteaded properties are based on individual property values.
Historical Perspective
The table below outlines the City's historical millage rate trend. For FY 2024, the City's Operatinq
millage rate is proposed to remain flat at 5.8155 mills, which is the same rate adopted for FY
2023.
Page 93 of 550
FY 2024 Final Millage Rates
September 27, 2023
Page 7
Millage Rate History
7.9000
6.0000
5.0000
4.0000
5
o•
w 3.0000
f
2.0000
1,0000
0.0000 FY 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 2024
•Debt Service MiYge 0.2990 02415 02375 0.2568 02870 020M 32568 02529 02295 02031 0.1796 0.1664 0.1600 02933 0.3227 02589 02360 0.3326
■Opentnq Uldepe 7.3740 5.6555 5.6555 5.6555 62155 6.1655 6.0909 5.8634 5.7942 5.7092 5.7092 5.7224 5.7288 5.7288 5.7288 5.7628 5.8155 5.8155
Total CombnW 7.6730 5.8970 5.8930 5.9123 6.5025 8.4539 6,3477 6.1163 6.0237 5.9123 5.8888 5.8888 5.8888 60221 6.0515 6.0515 8,0515 8.1481
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, 2023), 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 2024.
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 millage rate proposed for FY 2024, the Mayor and City Commission may, at any
time prior to final adoption, lower the millage rates proposed. However, increasing the proposed
millage rates 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 millage rates proposed,
as well as those of other taxing authorities, are 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 by August 24, 2023.
MAXIMUM MILLAGE DETERMINATION
For FY 2024, the Total General Operating millage rate is proposed at 5.8155 mills. Based on the
2023 Certification of Taxable Value received from the Miami -Dade County Property Appraiser,
the levy of 5.8155 mills would generate approximately $252.9 million in General Fund property
tax revenues, which is an increase of approximately $26.4 million over the budgeted FY 2023
General Fund property tax revenues of $226.5 million (this excludes the City Center RDA and
North Beach CRA).
Page 94 of 550
FY 2024 Final Millage Rates
September 27, 2023
Page 8
Adoption of the final Total General Operating millage rate of 5.8155 mills for FY 2024 requires a
two-thirds approval (5 of 7 votes) by the Mayor and City Commission per the State of Florida's
Truth-in-Millage (TRIM) requirements.
CONCLUSION
The Administration recommends adoption of the Resolution, which sets both the final total general
operating and voted debt service millage rates at 5.8155 mills and 0.3326 mills, respectively, for
FY 2024.
ATH/JDG/TOS
Page 95 of 550