2000-24080 RESO
RESOLUTION NO. 2000-24080
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING:
1) THE TENTATIVE AD VALOREM MILLAGE OF 7,399
MILLS FOR GENERAL OPERATING PURPOSES WHICH IS
SIX AND ONE HALF PERCENT (6.5%) GREATER THAN
THE "ROLLED-BACK" RATE OF 6.945 MILLS; 2) THE
DEBT SERVICE MILLAGE RATE OF 1.156 MILLS; AND 3)
SETTING 5:01 P. M., WEDNESDAY, SEPTEMBER 27,2000,
FOR THE SECOND PUBLIC HEARING TO CONSIDER THE
MILLAGE RATE AND BUDGET FOR FISCAL YEAR2000J01.
WHEREAS, on July 26, 2000, the City Commission adopted Resolution #2000-24050
which set the proposed millage rates at 7.399 for operating and 1.156 for debt service, The operating
millage of7 .399 is a decrease of 0.100 mills from the Administration recommendation of 7.499; and
WHEREAS, Florida Statutes 200,065 requires that at the conclusion of the first public
hearing on the proposed tax rate and budget, the City Commission: 1) adopt a tentative ad valorem
millage rate for FY 2000/01 operating purposes, This is accomplished by adopting a Resolution that
includes the percentage increase or decrease over the "Rolled-back" rate; 2) the required Debt
Service millage rate; and 3) the date, time, and place of the second public hearing,
NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that, pursuant to Section
200,065, Florida Statutes, there is hereby levied a tax for the Fiscal Year (FY) 2000101 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 govemment of the City, the rate assigned
amounts to U22. 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 six and one half percent (6.5%) greater than the
"Rolled-back" rate of 6,945 mills,
(b) For the purpose of providing payment on the principal and interest portions
of the General Obligation Bond Debt outstanding, the rate assigned amounts
to .l.J2.Q mills,
(c) The tentative adopted millage rates for the City of Miami Beach, Florida for
FY 2000/01 is subject to a second and final public hearing at 5:01 p,m"
Wednesday, September 27, 2000, in the City Commission Chambers, City
Hall, 1700 Convention Center Drive, Miami Beach, Florida,
PASSED and ADOPTED this H1h day o{8eptember, 2000,
APPROVED J>.S
ATTEST: FORM & LANGUAGE
_~ P ~ & FOR EXECUTION r/I(
CITY CLERK /jfi lJt,(JJ.1f->. fJ}-t.- dlJ MAYOR
ity ~"ntrf 7"{9"
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
hllp:\IcI.miami-beach.fl.u&
COMMISSION MEMORANDUM NO. 7 03 - 00
TO:
Mayor Neisen 0, Kasdin and
Members of the City Commission
DATE: September 14, 2000
FROM:
Jorge M. Gonzalez~ ~
City Manager '.,- 0
A RESOLUTIO OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, ADOPTING: 1) THE TENTATIVE AD
VALOREM MILLAGE OF 7.399 MILLS FOR GENERAL OPERATING
PURPOSES WHICH IS SIX AND ONE HALF PERCENT (6.5%) GREATER
THAN THE "ROLLED-BACK" RATE OF 6.945 MILLS; 2) THE DEBT
SERVICE MILLAGE RATE OF 1.156 MILLS; AND 3) SETTING 5:01 P. M.,
WEDNESDAY, SEPTEMBER 27, 2000, FOR THE SECOND PUBLIC
HEARING TO CONSIDER THE MILLAGE RATE AND BUDGET FOR
FISCAL YEAR 2000/01.
SUBJECT:
ADMINISTRATION RECOMMENDATION
The Administration recommends that the City Commission adopt the attached Resolution which sets
the following:
1) Tentatively adopted millage rates for Fiscal Year (FY) 2000/01
General Operating
Debt Service
Total
7,399 mills
~ mills
8,555 mills
( 7.499 last year)
( .L12!! last year)
( 8,698 last year)
2) The tentatively adopted combined millage rate of 8,555 mills is ,143 mills or 1.7% less than
the 8.698 combined millage rate for FY 1999100, While the tentatively adopted operating
millage rate of 7.399 mills for FY 2000/01 is lower than the rate for FY 1999/00. state statute
requires that we advertise that this rate is 6,5% greater than the "Rolled-back" rate of 6,945
mills,
3) The second public hearing to consider the final millage rates and budgets for FY 2000/01
shall be at 5:01 P,M" Wednesday, September 27,2000 in the City Commission Chambers,
City Hall, 1700 Convention Center Drive,
AGENDA ITEM
R.1~1
q-I'f-OO
DATE
Tentative Operating and Debt Service Millages
September 14,2000
Page 2
PROCEDURE
Florida Statutes 200,065 requires that at the conclusion of the first public hearing on the proposed
tax rate and budget, the City Commission proceed in the following specific manner:
1. Adopt a tentative ad valorem millage rate for FY 2000/01 operating purposes, This is
accomplished by adopting a Resolution that includes the percentage increase or decrease over
the "Rolled-back" rate; the required Debt Service millage rate; and, the date, time, and place
of the second public hearing,
In prior years, we were mandated to read this Resolution aloud, in its entirety.
However, a recent change in state statute requires that only the title be read aloud.
2, Adopt a tentative general operating budget for FY 2000/01. Also included, are budgets for
the Enterprise and Internal Service Funds, This is accomplished by adopting a companion
Resolution, (See accompanying Agenda Item R 7 A2),
Both the millage and budget Resolutions must be adopted again after a second and final public
hearing,
Procedurally, a millage either greater than or less than 7.399 mills may be adopted at this first
hearing, However, any millage rate adopted at the end of either the first or second public hearings
which exceeds the millage rate of 7,399 mills established in July 26, 2000, and certified to the
Property Appraiser, would require mailiDl! of a revised notice of proDertv taxes to each taxpaver.
The notice would be prepared by the Property ADpraiser. at the eXl}ense of the taxin\:
authority. and must precede the final hearin!! bv 10 to 15 days.
ANALYSIS OF PROPERTY V ALVES IN MIAMI BEACH
On June 30, 2000, the City received the "2000 Certification of Taxable Value" from the Miami-Dade
County Property Appraiser, It stated that the preliminary gross taxable value of both real and
personal property for the City of Miami Beach is $8,367,448,538, including $219,161,487 in new
construction which is the second largest increase this City has experienced in its recent history,
The preliminary 2000 value represents an increase of 10,9 percent over 1999's final gross taxable
value of $7,546,303,358, Alternately, the increase is 9,2 percent over 1999's preliminary gross
taxable value of $7,659,818,594, The difference of $113,515,236 between 1999's preliminary and
final values represents the equalization loss of 1.5 percent due to appeals, etc,
The comparative assessed values for the Miami Beach Redevelopment Agency South Pointe
redevelopment district increased by $160,508,800 or 28 percent from $573,844,250 to $734,353,050,
The assessed values in the City Center redevelopment district increased by $128,708,690 or 14,1
percent from $911,135,287 to $1,039,843,977,
Tentative Operating and Debt Service Millages
September 14,2000
Page 3
DETERMINING THE OPERATING MILLAGE LEVY
The first building block in developing a municipal budget is the establishment of the value of one
mill of taxation, wherein the mill is defined as $1,00 of ad valorem tax for each $1,000 of property
value, For the City of Miami Beach, this value is determined by the 2000 Certification of Taxable
Value and has been set at $8,367,449, Florida Statutes permit a discount of up to five percent for
early payment discounts, delinquencies, etc, For the City of Miami Beach, the discount utilized is
3.5 percent. Therefore, the 96,5 percent value of the mill is $8,074,588,
The proposed millage rate of 7.399 mills will generate ad valorem tax revenues of $59,743,877 (of
which $9,995,222 will be transferred to the Redevelopment Agencies) for a net revenue total of
$49,748,655 in the General Fund, The net General Fund ad valorem budget has increased
$2,388,020 (5%) from $47,360,635 to $49,748,655, The total amount is $5,134,794 more than the
prior year levy of $54,609,083, reflecting a 9,4 percent increase,
DETERMINING THE DEBT SERVICE MILLAGE LEVY
The debt service payment for FY 2000/01 is $9,334,224 and requires a tax rate of 1.156 mills, This
rate is 0,043 mills, or three and six tenths percent (3,6%) less than the FY 1999/00 rate of 1.199
mills,
COMBINING THE OPERATING AND DEBT SERVICE MILLAGE LEVIES
lllustrated below is a comparison of the combined millage rates and ad valorem revenues to the City
of Miami Beach for FY 1999/00 (final) and FY 2000/01 (preliminary),
Tax Rate Tax Levy
FY 99/00 FY 00101 lnd(Dec) FY 99/00 FY 00101 lnd(Dec)
General Operating 7.499 7.399 (0.100) $54,609,083 $59,743,877 $5,134,794
Debt Service .!.J.22 Llli. (0.043) 8.731.336 9.334,224 602.888
TOTAL 8.698 ~ (0.143) $63,340,419 $69,078,101 $5,737,682
If these proposed tax rates are adopted, then the combined tax rate will decrease by 0,143 mills, or
1.7 percent less than the current year, The operating millage will decrease by 0,100 or one and three
tenths percent (1.3%), and debt service millage will decrease by 0,043 mills, or three and six tenths
percent (3,6%),
COMBINING .J1JRISDICTIONAL OPERATING AND DEBT SERVICE MILLAGE LEVIES
City of Miami Beach property owners must also pay property taxes to Miami-Dade County, the
Miami-Dade County School Board, the South Florida Water Management District, and the Florida
Tentative Operating and Debt Service Millages
September 14, 2000
Page 4
Inland Navigation District. In FY 99/00, the Miami Beach portion of the total tax bill was 33,4
percent, The proposed millage rates for FY 2000/01 will decrease the Miami Beach portion of
the tax bill to 33.2 percent based on tax rates announced by other jurisdictions.
Revised FY 2000/01 tax rates may be considered by Miami-Dade County in September, The
countywide tax rate will remain at 5,809 mills; the County's debt service will decrease by 0,164 mills
from 0,816 to 0,652 mills, An increase for the Library District has been announced of 0,030 mills
from 0,321 to 0,351 mills, While it is not possible to determine the exact amount returned in
additional services, it should be noted that Miami-Dade County returned $6,251,249 during FY
1999/00 and $7,847,310 is estimated for FY 00/01 in tax-increment funds for the Redevelopment
Agency and its two tax -increment districts,
The Miami-Dade County School Board is scheduled to discuss its final tax rate on September 13,
2000, but has tentatively announced a decrease of 0,027 mills from the current rate of 9,644 mills,
lllustrated below are the current and proposed tax rates for the multiple taxing authorities,
Adopted Proposed % %of
Taxing Jurisdiction FY 99/00 FY 00101 IncI(Dec) Change Total
Miami Beach 33.2
General Operating 7.499 7.399 (0.100) (1.33)
Debt Service 1.199 1.156 (0.043) (3.59)
Dade County 26.5
CountyWide Operating 5.809 5.809 0.000 0.00
Ubrary 0.321 0.351 0.030 9.35
Debt Service 0.816 0.652 (0.164) (20.10)
ScboolBoard 9.644 9.617 (0.027) (0.28) 37.4
Otber 0.741 0.738 (0,003) (0.40) 2.9
Totals 26.029 25.722 (0.307) (1.18) 100.0
COMBINED MILLAGE LEVY IMPACT ON THE HOMEOWNER
Amendment 10 to the State Constitution took effect on January 1, 1995 and limited the increase in
assessed value of homesteaded property to the percentage increase in the consumer price index (CPl)
or three percent (3%), whichever is less, For 2000, the CPI has been determined to be 2,7 percent
Tentative Operating and Debt Service Millages
September 14, 2000
Page 5
and thereby establishes the limit for increased values as of January 1,2000, The $25,000 homestead
exemption is applied after the increase in value as follows: assuming that the average residential
property in Miami Beach was valued at $200,000, that value is increased by the 2,7 percent to a new
value of $205,400, The homestead exemption of $25,000 is then deducted, yielding a taxable value
of $180,400. Using the proposed tax rates, that value is then taxed as follows:
Taxing
Jurisdiction
Proposed
@7,399
W2
8.555
Miami Beach
Dade County
School Board
Other
$21.17
13,33
47,21
3,46
Totals
WJl
At the combined proposed millage rate of 8,555, the total dollars for both operating and debt service
paid to the City when compared to the prior year's taxable value of $175,000 and 8,698 millage rate,
would increase by $21,17, The overall taxes would increase by $85,17, This, of course, assumes
that the other taxing jurisdictions adopt these millages,
SECOND PUBLIC HEARING
The second public hearing on the tentatively adopted millage rate and budget for FY 2000/01 must
be held no later than 15 days after the first public hearing,
It is recommended that the second public hearing be set for 5:01 P,M" Wednesday, September 27,
2000 in the City Commission Chambers, City Hall, 1700 Convention Center Drive,
CONCLUSION
The Administration recommends adoption of the attached Resolution which sets both tentative
operating and debt service millage rates for FY 2000/01 and establishes a second public hearing to
be held on September 27, 2000, at 5:01 p, M,
JMG:PDW:JC