2013-28329 Reso RESOLUTION NO. 2013-28329
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ADOPTING: 1) THE TENTATIVE AD VALOREM
MILLAGE OF 5.8909 MILLS FOR GENERAL OPERATING PURPOSES,
WHICH IS SIX AND EIGHT-TENTHS PERCENT (6.8%) MORE THAN THE
"ROLLED-BACK" RATE OF 5.5158 MILLS; AND 2) THE DEBT SERVICE
MILLAGE RATE OF 0.2529 MILLS; FURTHER SETTING THE SECOND
PUBLIC HEARING TO CONSIDER THE MILLAGE RATE FOR FISCAL YEAR
(FY) 2013/149 ON MONDAY, SEPTEMBER 30, 2013 AT 5:01 P.M.
WHEREAS, the City of Miami Beach significantly reduced tax rates as property values
increased. Between FY 1999/00 and FY 2011/12, total combined City of Miami Beach property
tax rates declined approximately 2.2 mills despite an increase of 0.56 mills in FY 2010/11; and
WHEREAS, In FY 2007/08 alone, the millage rate declined by approximately 1.8 mills,
with annual savings to the average homesteaded property of over$400; and
WHEREAS, City of Miami Beach combined millage rates remain more than 2.55 mills
lower, or 29 percent, than in FY 1999/00 and approximately 1.5 mills lower than in FY 2006/07
when property values were similar to today's values, resulting in a net tax levy reduction of
approximately $24 million; and
WHEREAS, the administration is continuing to evaluate opportunities to further reduce the
millage, and
WHEREAS, on July 17, 2013, the City Commission following a duly noticed public
hearing, adopted Resolution No. 2013-28294, which set the proposed general operating millage
rates.at 5.8909 mills (excluding debt service), a reduction of 0.20 mills from the FY 2012/13 rate
for general operating purposes, and 0.2529 mills for debt service; and
WHEREAS Section 200.065 Florida Statutes requires that at the conclusion of the first
public hearing on the City's proposed tax rate and budget, the City Commission: 1) adopt a
tentative ad valorem millage rate for FY 2013/14 operating purposes; and 2) the required Debt
Service millage rate; this is accomplished by adopting a Resolution that includes the percentage
increase or decrease over the "rolled-back" rate; and
WHEREAS, at this time the Administration recommends that the City Commission set the
second and final public hearing to consider the aforestated millage rates for FY 2013/14.
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
2013/14, 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 5.8909 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 eight-tenths percent (6.8%) more than
the "Rolled-back" rate of 5.5158 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 0.2529 mills.
(2)The tentative adopted millage rates for the City of Miami Beach, Florida for FY 2013/14
are subject to a second and final public hearing, herein set for and to be held at 5:01 p.m.,
Monday, September 30, 2013, in the City Commission Chambers, City Hall, 1700 Convention
Center Drive, Miami Beach, Florida.
PASSED and ADOPTED this 11th day of September, 2013.
- e
,.......,, . MAY 6111
ATTEST:
INCORP ORATED:
CITY CLEFTKf (; 26 APPROVED AS TO
FORS& ANGUAGE
&E UTION
City Attorney
at
COMMISSION ITEM SUMMARY
Condensed Title:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,
ADOPTING: 1) THE TENTATIVE AD VALOREM MILLAGE OF 5.8909 MILLS FOR GENERAL OPERATING
PURPOSES,WHICH IS SIX AND EIGHT-TENTHS PERCENT(6.8%)MORE THAN THE"ROLLED-BACK"RATE OF
5.5158 MILLS; AND 2) THE DEBT SERVICE MILLAGE RATE OF 0.2529 MILLS; FURTHER SETTING THE
SECOND PUBLIC HEARING TO CONSIDER THE MILLAGE RATE FOR FISCAL YEAR(FY)2013/14,ON MONDAY,
SEPTEMBER 30,2013 AT 5:01 P.M.
Key Intended Outcome Supported:
Minimize taxes; Control Costs of payroll including salary and fringes;ensure expenditure trends are sustainable
over the long term; Improve the City's overall financial health and maintain overall bond rating; Increase
community satisfaction with city services
Supporting Data(Surveys, Environmental Scan, etc.):
Over the last several years,the City of Miami Beach has adopted budgets that provided tax and fee relief while at
the same time providing improving services that address community priorities (e.g. public safety, cleanliness,
landscaping and beautification,recreation and cultural arts programming,renewal and replacement funding for our
facilities,and building/development functions). In FY 2007/08 alone,the property tax rate declined by approximately
1.8 mills,with savings to the average property owner of over$400. In addition,in FY 2005/06 and FY 2006/07,the
City funded$200 and$300"homeowner dividends"paid to homesteaded property owners in the City.
However, recent years have been very challenging due to declines in property values and increasing costs,
particularly pension costs. Since their peak in FY 2007/08, property values Citywide have declined almost$2.2
billion(approximately 8 percent)through FY 2013/14,despite almost$3.08 billion in new construction added to the
roll. The July 1,2013 Certification of Taxable Value from the Miami-Dade County Property Appraiser reflects an
increase of 6.9%in property values for the City as a whole,7.3%in the RDA and 6.8%outside of the RDA.
Issue:
Shall the Mayor and City Commission adopt the resolution?
Item Summa /Recommendation:
The tota/proposed tentative operating millage is reduced from FY2012113 at 5.8909 mills,including a general
operating millage rate of 5.7826 and a General Fund Capital Renewal and Replacement millage of 0.1083.The voted
debt service millage rate is decreased from 0.2568 to 0.2529.
Advisory Board Recommendation:
Financial Information:
Source of Amount Account
Funds: 1
2
OB Total
Financial Impact Summary: The City has decreased the millage by 0.3587 mills in the last three years and
combined millage rates today remain more than 2.55 mills lower,or 29 percent, than in 1999/00 and approximately
1.5 mills lower than in 2006/07 when property values were similar to today's values. As a result, the proposed
property tax levy is approximately$24 million less in FY 2013114 than it was in FY 2006107.
City Clerk's Office Legislative Tracking:
Sign-Offs:
en D' ctor Assists it Mana er Cit Manager
AAgenda Item g-7 Al
��f 1 3
Date
N
City of Miami Beach, 1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and M bers of t e City Commission
FROM: Jimmy L. Morales, City Manager
DATE: September 11, 2013
SUBJECT: A RESOLUTION OF THE MAYO f AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, ADOPTING: 1) THE TENTATIVE AD VALOREM MILLAGE OF
5.8909 MILLS FOR GENERAL OPERATING PURPOSES,WHICH IS SIX AND EIGHT-
TENTHS PERCENT (6.8%) MORE THAN THE "ROLLED-BACK" RATE OF 5.5158
MILLS; AND 2)THE DEBT SERVICE MILLAGE RATE OF 0.2529 MILLS; FURTHER
SETTING THE SECOND PUBLIC HEARING TO CONSIDER THE MILLAGE RATE FOR
FISCAL YEAR (FY) 2013/149 ON MONDAY, SEPTEMBER 30, 2013 AT 5:01 P. M.
ADMINISTRATION RECOMMENDATION
The Administration recommends that the City Commission adopt the attached Resolution which
sets the following:
Proposed i age Rates for FY 2013/14:
General Operating 5.7826 mills
Capital Renewal & Replacement 0.1083 mills
Sub-Total Operating Millage 5.8909 mills(6.0909 FY 2012/13, 0.2000 decrease)
Voted Debt Service 0.2529 mills(0.2568 FY 2012/13, 0.0039 decrease)
Total 6.1438 mills (6.3477 FY 2012/13,0.2039 decrease)
2) The tentatively adopted combined millage rate of 6.1438 mills is 0.2039 mills less than the
6.3477 combined millage rate for FY 2012/13. The tentatively adopted operating millage of
5.8909 mills for FY 2013/14 is 0.3751 mills more than the roll-back rate of 5.5158,and thus,
the City is required to publish a Notice of Tax Increase.
3) The second public hearing to consider the final millage rates and budgets for FY 2013/14
shall be on Monday September 30, 2013 at 5:01 P.M., in the City Commission Chambers,
City Hall, 1700 Convention Center Drive.
The "Rolled-Back" millage rate for FY 2013/14 is the millage rate required to produce the same
level of property tax revenues in the General Fund in FY 2013/14 as anticipated to be received in
FY 2012/13. It is important to note, that the January, 1 2012 tax roll Citywide declined by $1.0
billion between the July 1, 2012 valuation and the July 1, 2013 valuation due to appeals,
adjustments,etc.,which is part of the reason that the FY 2013/14"rolled-back rate"is significantly
less than the FY 2012/13 current millage rate.
FY 2013/14 Proposed Millage
September 11, 2013
Page 2
The Administration is recommending a total combined millage rate for the City of Miami Beach of
6.1438. The total proposed operating millage decreases to 5.8909 mills,which includes a General
Operating millage rate of 5.7826 and a General Fund Capital Renewal and Replacement millage of
0.1083. The proposed voted debt service millage rate is adjusted from 0.2568 to 0.2529, a
decrease of 0.0039 mills.
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 2013/14 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
State statute requires that only the title be read aloud.
2. Adopt a tentative general operating budget for FY 2013/14.Also included,are budgets for
the Enterprise and Internal Service Funds. This is accomplished by adopting a companion
Resolution. (See accompanying City Budget Agenda Item).
Both the millage and budget Resolutions must be adopted again after a second and final public
hearing.
SUMMARY
In FY 2010/11 the city's approach to addressing the then deficit of $32 million included a
distribution of the shortfall between taxpayers and employees..Taxpayers had their tax rate
increased from 5.6555 to 6.2155, an increase of 0.56 mills while employee givebacks totaled$11
million. The goal of the Commission has been to return to a millage rate of 5.6555 mills as property
values increase over time. It should be remembered that between FY 2009/10 and FY 2010/11,
property values declined by$2.6 billion which,together with pension cost increases,drove the need
for an increase in the millage. As property values increase in the future, there will be additional
opportunities to bring the millage down to 5.6555.
In FY 2011/12,the City took its first step in that direction with a reduction in the millage rate of 0.05
mills. In FY 2012/13, the operating millage was reduced by an additional 0.0746 mills.
Administration recommends that the operating millage rate be reduced by an additional 0.2 mills.
The total operating millage reduction between FY 2010/11 and the proposed FY 2013/14 millage is
0.3246. Over three years, this reduction represents 58 percent of the goal to get back to a millage
rate of 5.6555. The remaining goal for millage reduction is 0.2354.
At the July 17, 2013, Commission meeting,the Commission adopted a 0.2 mill reduction resulting
in a total combined millage rate for the City of Miami Beach of 5.8909, which is comprised of a
general operating millage rate of 5.7826(a decrease of 0.2 mills),a General Fund Capital Renewal
and Replacement millage of 0.1083,and a voted debt service millage rate of 0.2529(a decrease of
0.0039 mills)for a total millage of 6.1438.
FY 2013/14 Proposed Millage
September 11, 2013
Page 3
It is important to remember that in prior years, the City of Miami Beach significantly reduced tax
rates as property values increased. Between FY 1999/00 and FY 2009/10,total combined City of
Miami Beach millage rates declined approximately 2.8 mills. In FY 2007/08 alone,the millage rate
declined by approximately 1.8 mills,with annual savings to the average homesteaded property of
over$400. Further,although the City increased the operating tax rate by 0.56 mills in FY 2010/11,
the City has decreased the millage by 0.3587 mills in the last three years and combined millage
rates today remain more than 2.55 mills lower, or 29 percent, than in 1999/00 and approximately
1'.5 mills lower than in 2006/07 when property values were similar to today's values.As a result,the
proposed property tax levy is approximately $24 million less in FY 2013/14 than it was in FY
2006/07.
ANALYSIS OF PROPERTY VALUES IN MIAMI BEACH
On July 1, 2013, the City received the "2013 Certification of Taxable Value" from the Property
Appraiser's Office stating that the taxable value for the City of Miami Beach is$24.7 billion including
$78.1 million in new construction. The preliminary 2013 value represents an increase of$1.6 billion
or 6.9 percent more than the July 1, 2012 Certification of Taxable Value of$23.1 billion and an
increase of 6.5 percent excluding new construction.
The comparative assessed values for the Miami Beach Redevelopment Agency City Center
redevelopment district increased from$3.6 billion to$3.9 billion an increase of$263 million or a 7.3
percent increase over 2012 certified values. In addition, assessed values within the geographic
area formerly known as the South Pointe redevelopment district increased from$3.6 billion to$3.9
billion an increase of$297 million,or an 8.2 percent increase in values over 2012 certified values.
As a result, taxable values in the areas outside the City Center RDA/South Pointe area increased
by 6.3 percent, from $15.4 billion to $1-6.4 billion, an increase of$974 million.
Citywide values excluding City Center increased from $19.5 billion to$20.8 billion, an increase of
$1.3 billion or 6.8 percent. Values outside the City Center area determine General Fund revenues.
Adjusting for the base value Center City RDA which remains in the General Fund,the increase is
actually 6.7 percent for the General Fund.
COMPARATIVE ASSESSED VALUES (in billions)
Jan. 1 2013
Value(in Change from 2012
Jan. 1 2012 Value in billions billions) Value(Budget)
As of July 1 Revised
2012 Value(For As of July 1
(For FY FY Change in 2013
2012/13 2012/13 2012 (For 2012/13 $
Budget) Projection) Values %Ch g. Budget) in billions %Ch
RDA-City Ctr $ 3.6087 $ 3.4072 $(0.2015) -5.6% $ 3.8714 $ 0.2627 7.3%
South Pointe 3.6181 3.4734 (0.1447) -4.0% 3.9148 $ 0.2967 8.2%
General Fund 15.8455 15.1414 (0.7041) -4.4% 16.8704 $ 1.0249 6.5%
excl S.Pte
Total Citywide $23.0723 $22.0220 (1.0503) -4.6% $ 24.6566 $ 1.5843 6.9%
Citywide Net $ 19.464 $ 18.615 $ (0.849) -4.4% $ 20.785 $ .1.3216 6.80
of City Center
FY 2013/14 Proposed Millage
September 11, 2013
Page 4
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,the value for each mill is determined by the 2013 Certification
of Taxable Value and has been set at$24.6 million. Florida Statutes permit a discount of up to five
percent for early payment discounts,delinquencies,etc. Therefore,the 95 percent value of the mill
is$23.4 million. Net of Center City RDA tax increment available to the General Fund,the value of
one mill at 95 percent is $20.0 million.
IMPACTS OF CHANGES IN PROPERTY VALUES
The FY 2012/13 operating millage rate for general City operations was 6.0909 based on July 2012
Certification of Taxable Value. Based on the July 1, 2013 Certification of Taxable Value, 6.0909
mills would generate approximately$150 million at 100%collection($142 million at 95%collection)
in general tax revenues, an increase of $9.6 million at 100% collection ($9.1 million at 95%.
collection)over FY 2012/13 property tax revenues Citywide(General Fund, City Center RDA and
the South Pointe area). The General Fund property tax revenues would increase by$7.6 million,if
the FY 2012/13 millage rate was maintained.
Further, the January, 1 2012 tax roll Citywide declined by $1.0 billion between the July 1, 2012
valuation and the July 1, 2013 valuation due to appeals, adjustments, etc., which is part of the
reason that the FY 2013/14 "rolled-back rate" is significantly less than the FY 2012/13 current
millage rate.
STATE LEGISLATED OPERATING MILLAGE REQUIREMENTS
Further, pursuant to recently enacted State legislation,the City may elect to approve millage rates
above the roll-back rate up to the constitutional cap of 10 mills subject to the following votes by the
Commission or referendum:
• Option I: A majority of the Commission is required to approve a millage up to 7.7169
(equivalent to 1.69 percent increase in property tax revenues). The 1.69 percent increase
is the state per capita personal income gain for the prior calendar year.
• Option 11: A two-thirds approval (5 of 7 votes)of the Commission is required to approve a
millage up to 8.4886(equivalent to a 10 percent increase in the ad valorem revenues above
Option 1).
• Option III:A unanimous approval of the Commission or referendum is required to approve a
millage above 8.4886 up to the 10 mill cap
DETERMINING THE VOTED DEBT SERVICE MILLAGE LEVY
The general obligation debt service payment for FY 2012/13 is approximately$5.9 million. Based
on the July 1,2013 Certified Taxable Value from the Property Appraiser,these bonds would require
the levy of a voted debt service millage of 0.2282 mills.This represents a decrease of 0.0286 mills.
FY 2013/14 Proposed Millage
September 11, 2013
Page 5
COMBINING THE OPERATING AND VOTED DEBT SERVICE MILLAGE LEVY
At the July 17, 2013 Commission meeting, the Commission set the operating millage at 0.2 mills
less than FY 2012/13 and the voted debt service millage decreased by 0.0039 mills. This
represents a total decrease of 0.2039 mills.
Illustrated below is a comparison of the combined millage rates and ad valorem revenues to the
City of Miami Beach for FY 2012/13 and FY 2013/14 (preliminary) including RDA. It is
recommended that in the General Fund, 0.1083 mills of the total operating millage continue to be
dedicated to renewal and replacement, resulting in approximately $1.98 million in renewal and
replacement funding.
Inc/(Dec)
From From
FY 06/07 FY 12/13 FY 13/14: Inc/(Dec) FY11/12 FY 06/07
City of Miami Beach Millage Rates
Operating 7.1920 5.9826= 5.7826 -0.2000
Capital Renewal & Replacement 0.1820 0.1083! 0.1083 0.0000
Sub-total Operating Millage 7.3740 6.0909; 5.8909; -0.2000 -3.3% -20.1%
Debt Service 0.2990 0.2568 0.2529; -0.0039
Total 7.67301 6.3477; 6.1438' -0.2039 -3.2% -19.9%
IMPACT OF PROPOSED MILLAGE ON PROPERTY OWNERS
Homesteaded Properties
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
(CPI)or three percent(3 percent),whichever is less. For 2012,the CPI has been determined to be
1.7 percent and therefore, the increase is capped at 1.7% for increased values as of January 1,
2013.
Overall, based on the homesteaded properties in the January 1,2012 homestead values as of July
1, 2012 valuation, (the latest available from the Miami-Dade County Property Appraiser at this
time),the median value of homesteaded property in Miami Beach for 2012 was$122,582,and the
average $295,315. Applying the increase to the market value of all existing homesteaded
properties from the 2012 tax roll,and the 1.7 percent CPI adjustment,the impact of the millage rate
adjustment to homesteaded properties would be as shown in the following table.
FY 2013/14 Proposed Millage
September 11, 2013
Page 6
Homesteaded Properties
IY 2013/14
FY2012/13 with 1.70/6 CPI
Median Average Median Average
2012 Preliminary Taxable Value $ 122,582 : $ 295,315 $ 124,666 : $ 300,335
City of Miami Beach
._.........._._.........._...._..__._._._._............_...._... ......................_._._...._............................................................. ................_........................_..............._....._......_.._._..............._........_._.........................
_....__.................
Operating $ 747 $ 1,799 $ 734 $ 1,769
Voted Debt 31 75 32 76
Total Miami Beach $ 778 1 $ 1,874 $ 766 $ 1,845
_........................._.............._........................................._................._.._....._._......... ............;................................................. .................._._._._._....._.................._................_.............................
.__.
$Change in Taxes
......................_...._._.. ..............._.........................................__.............................._._._............................:....................._....................................................................................................._.................................._...................
.
Operating $ (13) $ (30)
......................................................._......................_._.........................................................................._......._._.........._......._.;............_........._......._....._.........._............._................_.............._.._.__.;.......................................................
Voted Debt 1 1
._ ................. _
Total Miami Beach $ (12) $ (29)
Source:Miami-Dade County Property Appraiser's-2013-average-median-homestead-residential-
values file
Non-Homesteaded Properties
It is anticipated that,overall commercial properties,would reflect an increase based on the overall
increase in the property values, although individual properties could vary significantly.
Historical Perspective
It is important to remember that in prior years, the City of Miami Beach significantly reduced tax
rates as property values increased. Between FY 1999/00 and FY 2009/10, property tax rates
declined approximately 2.8 mills. In FY 2007/08 alone, the property tax rate declined by
approximately 1.8 mills,with annual savings to the average homesteaded property of over$400. In
addition, in FY 2005/06 and FY 2006/07, the City funded $200 and $300 homeowner dividends
paid to homesteaded property owners in the City.
0
a� °D
rn
� n
an
98 99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14
Fiscal Years
Although the City increased the operating tax rate by 0.56 mills in FY 2010/11, the City has
decreased the millage by 0.3587 mills in the last three years and combined millage rates today
remain more than 2.55 mills lower,or 29 percent,than in 1999/00 and approximately 1.5 mills lower
than in 2006/07 when property values were similar to today's values. As a result, the proposed
property tax levy is approximately$24 million less in FY 2013/14 than it was in FY 2006/07.
FY 2013/14 Proposed Millage
September 11, 2013
Page 7
240 30 _U
220
200 20
180 x ;
160
10
140
120 :
100 k 0
U
'07 '08 '09 10 11 12 13 14
EM Property Values =Tax Levy including Debt
Property Value, Millage, and Property Tax Levy
Millage Rates Tax Levy(in millions)
URMIUI
Total
Final/Revised (including S.
Taxable Total Combined Gneral Pointe,and
Taxable Values Taxable Property Values Citywide Fund/RDA Total including Renewal&
Chart Values(billions) (billions) Millage Millage Debt Replacement)
FY 1997/98 $ 6.46 $ 6.40 9.2100 7.4990 $ 57.45 $ 46.78
FYI 998/99 $ 6.97 $ 6.87 8.9830 7.4990 $ 60.37 $ 44.66
FY 1999/00 $ 7.66 $ 7.54 8.6980 7.4990 $ 64.29 $ 47.36
FY2000/01 $ 8.37 $ 8.22 8.5550 7.3990 $ 69.08 $ 49.75
FY2001/02 $ 9.40 $ 9.22 8.3760 7.2990 $ 75.97 $ 54.37
FY2002/03 $ 10.56 $ 10.41 8.3220 7.2990 $ 84.81 $ 61.05
FY2003/04 $ 12.09 $ 11.85 8.1730 7.2990 $ 95.39 $ 68.17
FY2004/05 $ 14.04 $ 13.86 8.1730 7.4250 $ 110.74 $ 79.38
FY2005/06 $ 17.45 $ 17.15 8.0730 7.4810 $ 135.91 $ 111.69
FY2006/07 $ 22.74 $ 22.26 7.6730 7.3740 $ 168.38 $ 140.31
FY2007/08 $ 26.85 $ 26.14 5.8970 5.6555 $ 150.42 $ 125.33
FY2008/09 $ 26.90 $ 25.89 5.8930 5.6555 $ 150.59 $ 125.94
FY2009/10 $ 24.70 $ 23.24 5.9123 5.6555 $ 138.70 $ 115.73
FY2010/1 1 $ 22.10 $ 20.97 6.5025 6.2155 $ 136.55 $ 112.14
FY201 1/12 $ 21.98 $ 20.75 6.4539 6.1655 $ 134.75 $ 1 1 1.29
FY2012/13 $ 23.071$ 22.021 6.3477 1 6.0909 $ 139.101$ 114.32
FY2013/14 $ 24.661 1 6.1438 1 5.8909 $ 143.901$ 1 17.96
Overlapping Jurisdictional Operating and Debt Service Millages
City of Miami Beach property owners 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, and the Florida Inland Navigation District.
The countywide tax rate for Miami-Dade County remained flat at 4.7035 mills; the library tax rate
remained flat at 0.1725 mills; and the debt service millage increased from 0.2850 mills to 0.4220
mills.
The tax rate for the Miami-Dade School District decreased from 7.9980 mills to 7.977 mills. The
Children's Trust millage is maintained at 0.5000 mills. The tax rate for the South Florida Water
FY 2013/14 Proposed Millage
September 11, 2013
Page 8
Management District is decreased from 0.3676 mills to 0.3523 mills. The tax rate for the Florida
Inland Navigation District remains flat at 0.0345, the same millage rate for the last 16 years.
With the proposed rates for FY 2013/14, the Miami Beach portion of the FY 2013/14 tax bill is
approximately 30 percent of the total bill. Of note, the County millage is 1.0880 mills less than their
millage in FY 2006107, as compared to the City's proposed millage which is 1.5292 mills less than
the City millage in FY 2006/07. Further, the School Board millage is only minimally below the FY
2006/07 millage rate,despite the recently proposed decrease. The significant difference in the total
overlapping millage rate is a direct result of the City's effort to keep the millage rates as low as
possible. A summary of the tax rate changes is provided in the following table.
%of FY
Variance Variance 13/14
OVERLAPPING TAX MILLAGE FY 06/07 FY 12/13 FY 13/14 from 12/13 from 06/07 Total
City of Miami Beach Millage Rates
Operating 7.1920 5.9826 5.7826 -0.2000 -1.4094
Capital Renewal& Replacement 0.1820 0.1083 0.1083 0.0000 -0.0737
Subtotal Operating Millage 7.3740 6.0909 5.8909 -0.2000 -1.4831
Voted Debt Service 0.2990 0.2568 0.2529 -0.0039 -0.0461
Total 7.6730 6.3477 6.1438 -0.2039 -1.5292 30%
Miami Dade County
Countywide 5.6150 4.7035 4.7035 0.0000 -0.9115
Library 0.4860 0.1725 0.1725 0.0000 -0.3135
Debt Service 0.2850 0.2850 0.42201 0.13701 0.1370
Subtotal 6.3860 5.1610 5.29801 0.1370 -1.0880 26%
School Board 8.1050 7.9980 7.9770 -0.0210 -0.1280 39%
Chi I d re n's Trust 0.4220 0.5000 0.5000 0.0000 0.0780 2%
Other 1 0.7360 0.46341 0.4455 -0.0179 -0.2905 2%
Total .23.32201 20.47011 20.3643 -0.1058 -2.9577 100%
Impact of Combined Tax Rates of Overlapping Jurisdictions on Homesteaded Properties
The median and average January 1,2013 taxable values of$122,582 and$295,315, respectively,
will increase by 1.7%CPI in FY 2013/14 due to the Save Our Homes Cap which only allows taxable
values to increase by 3.0% or CPI, whichever is lower.
Applying the proposed millage rates to the median and average taxable values results in an
additional $29 for the median and a $71 increase for the average. These increases are mitigated
by a decrease for the median of$12 and a $29 decrease for the average from the reduction in
millage in the City of Miami Beach's portion of the property tax bill.
Median properties would pay approximately$2,539 for all taxing jurisdictions combined,while the
average taxes generated would be approximately$6,116 per homesteaded property. Of these
taxing jurisdictions,the highest component is the Miami-Dade School Board,at$994 for a median
value property, and $2,396 for an average valued property.
FY 2013/14 Proposed Millage
September 11, 2013
Page 9
The following table provides examples of changes in property taxes for homesteaded properties
using the proposed tax rates and potential changes from 2012 values.
Impact on Homesteaded Properties Assuming
Changes in Taxable Value from January 1,2013
FY 2013/14
FY 2012/13 with 1.7%CPI
Median Average Median Average
2012 Taxable Value $ 122,582 $ 295,315 $ 124,666 $ 300,335
City of Maori Beach
Operating $ 747 $ 1,799 $ 734 $ 1,769
Voted Debt $ 31 $ 76 $ 32 $ 76
Total Miami Beach $ 778 $ 1,875 $ 766 $ 1,845
Maori Dade County $ 633 $ 1,524 $ 660 $ 1,591
Schools $ 980 $ 2,362 $ 994 $ 2,396
Other $ 118 $ 285 $ 118 $ 284
Totall $ 2,509 $ 6,045 $ 2,539 $ 6,116
Change in Taxes
City of Marni Beach
Operating $ (12) $ (29)
Voted Debt $ 0 $ 0
Total Maori Beach $ (12) $ (29)
Maori Dade County $ 28 $ 67
Schools $ 14 $ 34
Other $ (0) $ (1)
Total $ 29 $ 71
As with the City of Miami Beach millage rates, impacts of the combined jurisdictional millage rates
for non-homesteaded properties are based on the individual property values.
SECOND PUBLIC HEARING
The second public hearing on the tentatively adopted millage rate and budget for FY 2013/14 must
be advertised no later than 15 days after the first public hearing. It is recommended that the second
public hearing be set for Monday, September 30, 2013 at 5:01 P.M., 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 2013/14 and establishes a second public hearing to
be hel Monday, September 30, 2013, at 5:01 P. M.
JLM: B/JW
1ENE i THURSDAY,AUGUST 22,2013 NE
MIAM SEACH
CITY OF.MIAMI BEACH
NOTICE OF PUBLIC HEARINGS
NOTICE IS HEREBY given that public hearings will be held
by the Mayor and City Commission of the City of Miami
Beach,Florida,in the City Commission.Chambers,3rd Floor,
City Hall, 1700 Convention Center Drive, Miami Beach,
Florida,on Wednesday,September 11,2013 to consider
the following:
5:01 p.m.
The First Public Hearing Adopting:The Proposed Millage
Rates And Budgets For Fiscal Year(FY)201.3/14 For The City
Of Miami Beach. '
5:02 p.m.
The First Public Hearing Adopting The Proposed Millage
Rate,And Budget For Fiscal Year (FY) 2013/14 For The
Normandy Shores Local Government Neighborhood
Improvement District.
Inquiries may be directed to the Office of Budget and
Performance Improvement(305)673-7510.
INTERESTED PARTIES are invited to appear at this meeting,
or be represented by an agent,or to express their views:in
writing addressed to the City Commission,c/o the City Clerk,
1:700 Convention Center Drive, 1st Floor, City Hall, Miami
Beach, Florida 33139. Copies of these items are,available
for public inspection during normal business hours in the
City Clerk's Office,1700 Convention Center Drive,1st Floor,
City Hall,Miami Beach,Florida 33139.This meeting may be
continued, and under such circumstances, additional legal
notice Will not be provided.
Rafael E.Granada,City Clerk
City of Miami Beach
Pursuant to.Section 285.0105,.Fla. Stat., the.City hereby
advises the public that if a person decides to appeal any
decision made'by the City Commission with respect to any
matter considered at its meeting or its hearing,such person
must ensure that.a verbatim record of the proceedings is
made, which record includes the testimony and evidence
upon which the appeal is to be based`.This notice does
not constitute.consent by the City for the introduction or
admission of otherwise inadmissible or irrelevant evidence,
nor does it authorize challenges or appeals not otherwise
allowed by law.
To request this material in accessible format,sign language
interpreters,information on access for persons with disabilities
and/or any accommodation to review any document or
participate in any City-sponsored proceeding,please contact
usfive.days in advance at(305)673-7411(voice)orM users
may also call the Florida Relay Service at 71.1.
Ad.#797
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