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Home My WebLink About2001-24547 RESO RESOLUTION NO. 2001-24'47 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, SETIING THE PROPOSED MILLAGE RATES FOR FISCAL YEAR (FY) 2001102, THE CALCULATED "ROLLED-BACK" RATE, AND THE DATE, TIME, AND PLACE OF THE FIRST PUBLIC HEARING; 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 may fix the millage rate and adopt an annual budget; and WHEREAS, the City of Miami Beach is required to advise the Miami-Dade County Property Appraiser of the Proposed Millage Rates, the "Rolled-Back" Rate, and the date, time, and place of the tirst public hearing. 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: I) Proposed Millage Rales for FY 2001/02 General Operating Debt Service 7.299 mills 1.077 mills 8.376 mills 2) "Rolled-Back" Rate 6.695 mills 3) The fust public hearing on the proposed millage rate and the tentative budget for FY 2001102 shall be held on Wednesday, September 5, 2001 at 5:01 P.M., in the City Commission Chambers, City Hall, 1700 Convention Center Drive, Miami Beach, Florida. PASSED and ADOPTED, this 25th day of Julv. 2001, ~~ APPROVED AS TO ~PORM&LANGUAGE CITY CLERK a FOR EXECUTION 7- 2..S'~o J UeIII CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\ci,miami-beach.fl.us COMMISSION MEMORANDUM NO. 5"J1-o / TO: Mayor Neisen O. Kasdin and Members oftbe City Commission DATE: July 25, 2001 FROM: Jorge M. Gonzalez \,. l~ City Manager 6'" 0 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 (FY) 2001/02; 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. SUMMARY The Administration is recommending the City's operating millage rate at the current rate of 7.399, and has calculated a decrease of 0.079 in the current debt service millage rate of 1.156 to 1.077. Although the overall millage will decrease (0.079), due to increases in assessed value there will be a net increase of$37.03 in the amount of taxes that the average residential homeowner will pay to the City in the coming fiscal year. The School Board has announced an overall decrease in the property tax rate and the County rate will remain the same, but due to increases in assessed values, the combined impact on the average homeowner in Miami Beach will be an increase of $122.24. 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: I) Proposed Millage Rates for FY 2001/02: General Operating 7.399 mills (7.399 last year) Debt Service 1.077 mills (1.l56 last year) 8.476 mills (8.555 last year) AGENDA ITEM J?}/f. DATE 7-;2s-...o1 FY 2001102 Proposed Millage Rate July 25, 2001 Page 2 2) "Rolled-Back" Rate (Truth in Millage) 6.695 mills 3) The firsl public hearing to consider the proposed millage rates and tentative budgets for FY 2001102 shall be at 5:01 p.m., Wednesday, September 5, 2001 in the City Commission Chambers, City Hall, 1700 Convention Center Drive, Miami Beach, Florida. DECISION-MAKING PROCESS The budget development process has included participation from within and from outside City Hall. Budget briefings were held on July loth and July 12th, to inform the Commission and the citizens of preliminary General Fund revenue projections and department expenditure requests for FY 2001/02. The Budget Advisory Committee (BAC) hosted a cilizen forum on June 28, 2001 to gain additional citizen input regarding the proposed budget. The Administration conducted a Commission workshop on July 16,2001, for the purpose of informing both the Commission and the citizens about the status of the proposed budget. At that workshop, the Administration provided an overview of the budgets for General Fund, Enterprise Funds, Resort Tax Fund and the Internal Service Funds. In addition, we provided detail of recommended new and enhanced services. Maintaining the basic service level into FY 2001102 will translate into a total operating budget of $138,449,493 which is $10,449,817 or 8.2% greater than the amended budget of$127,999,6l6. This proposed budget includes new or increased services in the net amount of$3.6 million. These enhancements include funding for additional personnel in the Information Technology Department to enable implementalion and maintenance of new and existing computer systems, one additional lifeguard location, a regular bimonthly bilingual newsletter to be sent to all residents, additional support staff in various departments, as well as enhanced services in the areas of Parks and Recreation and Neighborhoods Services to maintain new facilities and services that have come on line. STATUTORY REOUIREMENTS FS 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 statute, the City is required, within 35 days of receipt of the "Certification of Taxable Value" (received June 29, 2001), to advise the Miami-Dade County Property Appraiser of the proposed general operating millage rate, the calculated "rolled-back" rate and the date, time, and place of the first public hearing FY 2001/02 Proposed Millage Rate July 25, 2001 Page 3 to consider the proposed millage rates and tentative budgets for FY 2001/02. The required Debt Service millage rate must also be set at the same time. After setting the proposed operating millage rate, the Commission may, at any time prior to the final adoption, lower the rates by adjusting priorities. Increasing the millage rate may only be accomplished by an expensive mailing and advertising process to every property owner on Miami Beach. ANALYSIS OF PROPERTY V ALVES IN MIAMI BEACH On June 29, 2001, the City received the "2001 Certification of Taxable Value" from the Property Appraiser's Office stating that the taxable value for the City of Miami Beach is $9,398,715,152, including $338,232,674 in new construction, which is the second largest increase this City has experienced in its recent history. The preliminary 2001 value represents an increase of 14.6 percent over 2000's final value of $8,198,698,509. Alternately, the increase is 12.3 percent over 2000's preliminary value of $8,367,448,538. The difference of $168,750,029 between 2000's preliminary and final values represents the equalization loss of less than 2.1 percent due to appeals, etc. The comparative assessed values for the Miami Beach Redevelopment Agency South Pointe redevelopment district increased by $107,639,226 or 14.7 percent from $733,075,306 to $840,714,532. The assessed values in the City Center redevelopment district increased by $179,972,113 or 17.3 percent from $1,038,250,650 to $1,218,222,763. 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 2001 Certification of Taxable Value and has been set at $9,398,715. 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 $9,069,760. Preliminary budget estimates reveal that the current millage rate of7.399 mills will be sufficient to fund a current, basic service level as it presently exists, and selected service enhancements, into the next year. The proposed millage rate of7.399 mills will generate ad valorem tax revenues of$67,107,154 (of which $11,996,676 will be transferred to the Redevelopment Agencies) for a net revenue total of FY 2001/02 Proposed Millage Rate July 25, 2001 Page 4 $55,110,478 in the General Fund. The total amount is $7,363,277 more than the prior year levy of $59,743,877, reflecting a 12.3 % increase. The net General Fund ad valorem budget has increased $5,361,823 (10.8%) from $49,748,655 to $55,110,478, DETERMINING THE DEBT SERVICE MILLAGE LEVY The debt service payment for FY 2001/02 is $ 9,768,132 and requires a tax rate of 1.077 mills, This rate is 0.079 mills, or six and eight tenths percent (6.8%) less than the FY 2000/01 rate of 1.156 mills. COMBINING THE OPERATING AND DEBT SERVICE MILLAGE LEVIES lIIustrated below is a comparison of the combined millage rates and ad valorem revenues to the City of Miami Beach for FY 2000/01 (final) and FY 2001/02 (preliminary). Tax Rate Tax Levy FY 00/01 FY 01102 Inc/(Dec) FY 00'01 FY 01102 Incl(Dec) General Operating 7,399 7,399 0,000 $58.539,001 $67,107,154 $8,568,153 Debt Service 1.156 1.077 (0.079) 9.145,977 9,768.132 622.155 TOTAL 8.555 8.476 (0.079) $67,684,978 $76,875,286 $9,190,308 1f these recommended millage rales are tentatively adopted, then the combined tax rate will decrease by 0.079 mills, or 0.9% less than the current year. The operating millage will remain constant, and debt service millage will decrease by 0.079 mills, or six and eight tenths percent (6.8%). COMBINING JURISDICTIONAL 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 Inland Navigation District. In FY 00/01, the Miami Beach portion of the total tax bill was 33.3 percent. The recommended millage rates for FY 2001102 will place the Miami Beach portion of the tax bill at the same percent based on tax rates announced by other jurisdictions. Revised FY 2001/02 tax rates may be considered by Miami-Dade County on September 6,2001. The countywide tax rate will remain at 5.751 mills; the County's debt service will remain at .652 mills. The Library District has announced that the millage will remain at 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 $7.585.042 during FY 2000101 in tax-increment funds for the Redevelopment Agencv and its two tax-increment districts. FY 2001102 Proposed Millage Rate July 25, 2001 Page 5 The Miami-Dade County School Board is scheduled to discuss its final tax rate on September 12, 2001 but has tentatively announced a rate of 9.523 mills; a decrease of .094 mills. The South Florida Water Management District has proposed no increase from the current rate of 0.697 mills. The South Florida Inland Navigation District has proposed a decrease of 0.002 mills from its current rate of 0.041 mills to 0.039 mills. Illustrated in the following chart are the current and proposed tax rates for the multiple taxing authorities. Adopted Proposed % %of Taxing Jurisdiction FY 00101 FY 01102 Inc/{Dec) Change Total Miami Beach 33.3 General Operating 7.399 7,399 0.000 0,00 Debt Service \.156 1.077 (0.079) (6,83) Miami~Dade County 26,5 Countywide Operating 5,751 5,751 0.000 0,00 Library 0.351 0.351 0,000 0,00 Debt Service 0,652 0,652 0.000 0,00 School Board 9,617 9.523 (0,094) (0.98) 37.3 Other 0,738 0,736 (0,002) (0.27) 2.9 Totals 25,664 25.489 (0.175) (0,68) 100,0 COMBINED MILLAGE LEVY IMP ACT ON THE HOMEOWNER Amendment 10 to the State Constitution took effect on January 1, 1995 and limited the increase in assessed value of homes leaded property to the percentage increase in the consumer price index (CPI) or three percent (3%), whichever is less. For 2001, the CPI has been determined to be 3.5 percent and therefore, the increase is capped at 3% for increased values as of January 1,2001. 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 3.0% to a new value of $206,000. The homestead exemption of $25,000 is then deducted, yielding a taxable value of$181,000. FY 2001102 Proposed Millage Rate July 25,2001 Page 6 U sing the proposed tax rates, that value is then taxed as follows: Taxing Jurisdiction Proposed @7.399 1.077 8.476 Miami Beach Miami-Dade County School Board Other $37.03 40.52 40.69 --.-'LQQ Totals $122.24 At the combined proposed millage rate of 8.476, the total dollars for both operating and debt service paid to the City when compared to the prior year's taxable value of $200,000 and 8.555 millage rate, would increase by $37.03. The overall taxes would increase by $122.24. This, of course, assumes that the other taxing jurisdictions adopt these millages. BUDGET RECOMMENDATION The Adminislration recommends that you adopt 7.399 mills, which will maintain current basic service levels, fund operational costs for projects as they come on-line, and fund enhanced service levels as possible. In addition, you may select any millage rate up to the constitutional cap of 10 mills. FIRST PUBLIC HEARING The first public hearing on the proposed millage rates and tentative budgets for Fiscal Year 2001/02 must be held no later than 80 days (September 18th) or earlier than 65 days (September 3rd) from the start of the TRIM ("Truth In Millage") 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 hearings; and 2) if on a day other than Saturday, the public hearing must be after 5:00 P.M. FY 2001/02 Proposed Millage Rate July 25, 2001 Page 7 Based on these guidelines, the first hearing must be held belween September 3rd and September 18th. These dates are unavailable for the following reasons: September 9,16, & 23 September 6 and 20 September 12 Sundays Miami-Dade County Public Hearings Miami-Dade County School Board Public Hearing Of the remaining days, it is recommended that the first public hearing be set for 5:01 P,M., Wednesday, September 5, 2001 in the City Commission Chambers, City Hall, 1700 Convention Center Drive. 1 wish to take this opportunity to thank the Office of Management and Budget, the Finance Department, the Department Directors, Assistant City Managers, and all City personnel that worked so diligently on this budget. The Administration looks forward to continued assistance from the Budget Advisory Committee, the City Boards and Committees, and community groups upon release ofthe Proposed Budget and at the public hearings to be held in September. ~WJ~