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2013-28350 Reso RESOLUTION NO. 2013-28350 A RESOLUTION ADOPTING: 1) THE FINAL AD VALOREM MILLAGE OF 5.8634 MILLS FOR GENERAL OPERATING PURPOSES, WHICH IS SIX AND THREE-TENTHS PERCENT (6.3%) MORE THAN THE "ROLLED-BACK" RATE OF 5.5158 MILLS; AND 2) THE DEBT SERVICE MILLAGE RATE OF 0.2529 MILLS. WHEREAS, on July 17, 2013, the City Commission following a duly noticed public hearing, adopted Resolution No. 2013-28294, set the preliminary 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, on September 11, 2013 the Mayor and Commission tentatively adopted the operating millage rate of 5.8909 mills for general operating purposes, and 0.2529 mills for debt service; and WHEREAS, on September 23, 2013 the Mayor and Commission discussed reducing the operating millage rate an additional 0.0275 mills to 5.8634 mills 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 second public hearing on the City's proposed tax rate and budget, the City Commission: 1) adopt the ad valorem millage rate for FY 2013/14 operating purposes; and 2) the required Debt Service millage rate; and this is accomplished by publicly announcing the name of the taxing authority, the "Rolled-back" rate, the percentage increase of the "Rolled-Back" rate, and the millage rates before adoption of the millage levy resolution; and 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 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 5.8634 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 three-tenths percent (6.3%) 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. 2013-28350 PASSED and ADOPTED this 30th day of September, 2013. 13...... ... AY la C ATTEST: S' iNCOR- oR���o CITY CLERK - APPROVED AS TO FORM & LANGUAGE &FOR EXECUTION Q 21 �3 ttorney J Dail COMMISSION ITEM SUMMARY Condensed Title: A RESOLUTION ADOPTING: 1) THE FINAL AD VALOREM MILLAGE OF 5.8634 MILLS FOR GENERAL OPERATING PURPOSES,WHICH IS SIX AND THREE-TENTHS PERCENT(6.3%)MORE THAN THE"ROLLED- BACK"RATE OF 5.5158 MILLS;AND 2 THE DEBT SERVICE MILLAGE RATE OF 0.2529 MILLS. 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. Item Summa /Recommendation: The tentative general operating millage rate of 5.8909 was adopted on September 11,2013 at the first public hearing on the FY 2013/14 Budget. The general operating millage rate has been reduced by 0.0275 based on discussion at the Commission's budget workshop on September 23,2013. The total proposed final operatin_g millage is reduced from FY 2012113 at 5.8634 mills, including a general operating millage rate of 5.7551 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 OBPI Total Financial Impact Summary: With the recommended millage, the City will have decreased the combined millage rate by 0.3862 mills in the last three years and combined millage rates today remain more than 2.58 mills lower, or almost 30 percent, than in FY 1999/00 and approximately 1.55 mills lower than in FY 2006/07 when property values were similar to today's values.As a result,the proposed property tax levy is approximately$25 million less in FY 2013114 than it was in FY 2006107. City Clerk's Office Legislative Tracking: Sign-Offs: �*ArtWfij&VAor AssisWtot ana er Mana ger AGENDA ITEM Ro?A ' MIAMIBEACH '�' SATE MIAMI BEACH City of Miami Beath, 1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Me ers of the ity Commission FROM: Jimmy L. Morales, City Manager DATE: September 30, 2013 SUBJECT: A RESOLUTION ADOPTING: " T E FINAL AD VALOREM MILLAGE OF 5.8634 MILLS FOR GENERAL OPERATI G PURPOSES, WHICH IS SIX AND THREE- TENTHS PERCENT (6.3%) MORE THAN THE "ROLLED-BACK" RATE OF 5.5158 MILLS; AND 2)THE DEBT SERVICE MILLAGE RATE OF 0.2529 MILLS. ADMINISTRATION RECOMMENDATION The Administration recommends that the City Commission adopt the attached Resolution which sets the following: 1) Final Adopted Millage Rates for FY 2013/14: General Operating 5.7551 mills Capital Renewal & Replacement 0.1083 mills Sub-Total Operating Millage 5.8634 mills(6.0909 FY 2012/13, 0.2275 decrease) Voted Debt Service 0.2529 mills(0.2568 FY 2012/13, 0.0039 decrease) Total 6:11-63 mills (6.3477 FY 2012/13,0.2314 decrease) 2) The final adopted combined millage rate of 6.1163 mills is 0.2341 mills less than the 6.3477 combined millage rate for FY 2012/13. The final adopted operating millage of 5.8634 mills for FY 2013/14 is 0.3476 mills more than the rolled-back rate of 5.5158, and thus, the City is required to publish a Notice of Tax Increase. This notice was duly published in the Miami Herald on Thursday, September 26, 2013 in accordance with Florida Statutes 200.065. 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 less than the FY 2012/13 current millage rate. The Administration is recommending a total combined millage rate for the City of Miami Beach of 6.1163. The total proposed operating millage decreases to 5.8634 mills,which includes a General Operating millage rate of 5.7551 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. FY 2013/14 Final Millage September 30, 2013 Page 2 The final adopted millage rate provides funding to partially offset the following: • 5% step increases for members of the Fraternal Order of Police and International Association of Firefighters to the maximum of their pay range • 2 percent merit increases for all other employees to their maximum of pay ranges, a minor increase in benefit costs (approximately 1 percent) • 4 percent increase in operating costs primarily due to professional services in the City Attorney and Building Department and living wage increases in the management agreement for golf courses A 5 percent increase in internal service charges. In addition the proposed budget includes funding for approximately$365,000 in enhancements and $1,318,000 in reserves. PROCEDURE Florida Statutes 200.065 requires that at the conclusion of the second public hearing on the final proposed tax rate and budget, the City Commission proceed in the following specific manner: 1. Adopt an ad valorem millage rate for FY 2013/14 operating purposes. The statute requires the name of the taxing authority, the "Rolled-Back" rate, the percentage increase or decrease over the"Rolled-back"rate, and the millage rates be publicly announced before adoption of the millage levy resolution. State statute requires that only the title be read aloud. 2. Adopt a 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). CHANGES FROM TENTATIVE BUDGET The first public hearing adopting the tentative millage rates and budgets for FY 2013/14 was held on Wednesday, September 11, 2013. A budget workshop was held on Monday, September 23, 2013,at which the Commission discussed reducing the tentative general operating millage rate by 0.0275 mills to 5.7551 mills. 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. FY 2013/14 Final Millage September 30, 2013 Page 3 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 0.2275 mills. The total operating millage reduction between FY 2010/11 and the proposed FY 2013/14 millage is 0.3521. Over three years,this reduction represents 63 percent of the goal to get back to a millage rate of 5.6555. The remaining goal for millage reduction is 0.2079. The total combined millage rate for the City of Miami Beach of 5.8634, which is comprised of a general operating millage rate of 5.7551 (a decrease of 0.2275 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) is 6.1163. Total Combined Millage O Cn a in 98 99'00'01'02'03'04'05'06'07'08-'09'10 Ill'12'13'14 Fiscal Years 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,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 0.3521 mills in the last three years and combined millage rates today are 0.3862 mills lower than in FY 2009/10 and more than 2.58 mills lower,or almost 30 percent,than in FY 1999/00 and approximately 1.55 mills lower than in FY 2006/07 when property values were similar to today's values. As a result,the proposed property tax levy is approximately $25 million less in FY 2013/14 than it was in FY 2006/07. 0 30 2ao o 220 = : M a� Ell >, 200 � 20 `� > < 180 � s 160 _ 10 y CD 140 � . 0 120W : E 0 100 a 0 U - '07 '08 '09 110 '11 '12 '13 '14 Property Values Tax Levy including Debt FY 2013/14 Final Millage September 30, 2013 Page 4 Property Value, Millage, and Property Tax Levy Millage Rates Tax Levy(in millions) Total Final/Revised (including S. Taxable Total Combined Gneral Pointe,and Taxable Values Taxable Properly 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 FYI 999/00 $ 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 FY2011/12 $ 21.981 $ 20.75 6.4539 6.1655 $ 134.75, $ 111.29 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 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 $16.4 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. FY 2013/14 Final Millage September 30, 2013 Page 5 COMPARATIVE ASSESSED VALUES (in billions) Jan. 1 2013 Value (in Change from 2012 Jan. 1 2012 Value in billions) billions) Value Bud et) 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) Pro'ection 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 of City Center $ 19.464 $ 18.615 $ (0.849) -4.4% $ 20.785 $ 1.3216 6.8% 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 City Center 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. f FY 2013/14 Final Millage September 30, 2013 Page 6 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 II: 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. COMBINING THE OPERATING AND VOTED DEBT SERVICE MILLAGE LEVY At the July 17, 2013, Commission meeting, the Commission adopted a 0.2 mill reduction and at a budget workshop on September 23,2013,the Commission discussed reducing the millage rate by an additional 0.0275 mills, which represents a total decrease of 0.2275 mills. The voted debt service millage decreased by 0.0039 mills. Illustrated below is a comparison of the proposed 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. The total millage rate for FY 2013/14 is 20.3% lower than FY 2006/07 and 3.6% lower than last year. Inc/(Dec) From FY ---From FY 06/07 FY 12/13 FY '13/14 Inc/(Dec) FY12/13 FY 06/07 City of Miami Beach Millage Rates Operating 7.1920 5.9826`; 57551: -0.2275 F Capital Renewal &Replacement 0.1820 0.1083 : 0:1083: 0.0000 Sub-total Operating Millage 7.3740 6.0909;` 5.8634; -0.2275 -3.7% -20.5% Debt Service 0.2990 0.2568: 0: 529: -0.0039 Total 1 7.67301 6.3477 x:1163: -0.2314 -3.6% -20.3% FY 2013/14 Final Millage September 30, 2013 Page 7 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 a savings of$15 for median properties and $37 for average properties. Homesteaded Properties FY 2013/14 FY 2012/13 with 1.7%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 $ 731 $ 1,761 Voted Debt 31 75 32 76 Total Miami Beach $ 778 $ 1,874 $. 763 $. . 1,837 $Change in Taxes Operating $ (16) $ (38) Voted Debt 1 1 Total Miami Beach $ (15) $ (37) Source: Miami-Dade County Property Appraiser's-2013-average-median-homestead-residential-values file Non-Homesteaded Properties The annual increase in market value of a non-homestead property is capped at 10 percent(does not apply to school millages). The city-wide average increase in property values is 6.9 percent. The property value of individual properties may increase more or less than 6.9 percent, but not more than 10 percent. Because of the decrease in the millage rate of 0.2314,the taxable value of a property would have to increase by more than 3.6%to pay more property taxes to the City than in the previous year. FY 2013/14 Final Millage September 30, 2013 Page 8 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 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 1.5567 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 06107 FY 12113 FY 13114 from 12113 from 06107 Total City of Miami Beach Millage Rates Operating 7.1920 5.98261 5.7551 -0.2275 -1.4369 Capital Renewal&Replacement 0.1820 0.1083 0.1083 0.0000 -0.0737 Subtotal Operating Millage 7.3740 6.0909 5.8634 -0.2275 -1.5106 Voted Debt Service 0.2990 .0.2568 0.2529 -0.0039 -0.0461 Total 7.6730 6.3477 6.1163 -0.2314 -1.5567 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 0.4220 0.1370 0.1370 Subtotal 6.3860 5.16101 5.29801 0.1370 -1.0880r- 26% School Board 8.1050 7.9980 7.9770 -0.0210 -0.1280 39% Children's Trust 0.4220 0.5000 0.5000 0.0000 0.0780 2% Other 0.7360 .4634 0.4455 -0.0179 -0.2905 2% Total 23.3220�_i.4 701 20.3368 -0.1333 -2.9852 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. FY 2013/14 Final Millage September 30, 2013 Page 9 Applying the proposed millage rates to the median and average taxable values results in an additional$27 for the median and a $64 increase for the average. These increases are mitigated by a decrease for the median of$15 and a $37 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$2,535 for all taxing jurisdictions combined,while the average taxes generated would be approximately$6,108 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. 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 2013114 FY 2012113 with 1.7%CPI Median Average Median Average 2012 Taxable Value $ 122,582 $ 295,315 $ 124,666 $ 300,335 City of Miami Beach Operating $ 747 $ 1,799 $ 731 $ 1,761 Voted Debt $ 31 $ 76 $ 32 $ 76 Total Miami Beach $ 778 $ 1,875 $ 762 $ 1,837 Miami Dade County $ 633 $ 1,524 $ 660 $ 1,591 Schools $ 980 $ 2,362 $ 994 $ 2,396 Other $ 118 $ 285 $ 118 $ 284 Totall$ 2,509 $ 6,0451$ 2,535 $ 6,108 Change in Taxes City of Miami Beach Operating $ (16) $ (38) Voted Debt $ 1 $ 1 Total Miami Beach $ (15) $ (37) Miami Dade County $ 28 $ 67 Schools $ 14 $ 34 Other $ (0) $ (1) Total $ 27 $ 64 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. 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