2014-28735 Reso RESOLUTION NO. 2014-28735
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ADOPTING: 1) THE TENTATIVE AD VALOREM
MILLAGE OF 5.7942 MILLS FOR GENERAL OPERATING PURPOSES,
WHICH IS THIRTEEN AND FOUR-TENTHS PERCENT (13.4%) MORE THAN
THE "ROLLED-BACK" RATE OF 5.1076 MILLS; AND 2) THE DEBT
SERVICE MILLAGE RATE OF 0.2295 MILLS; FURTHER SETTING THE
SECOND PUBLIC HEARING TO CONSIDER THE MILLAGE RATE FOR
FISCAL YEAR (FY) 2014/159 ON TUESDAY, SEPTEMBER 30, 2014 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 2.6 mills
lower, or 31 percent, than in FY 1999/00 and approximately 1.6 mills lower than in FY 2006/07,
resulting in a net tax levy reduction of approximately $13 million; and
WHEREAS, the administration is continuing to evaluate opportunities to further reduce the
millage, and
WHEREAS, on July 23, 2014, the City Commission following a duly noticed public
hearing, adopted Resolution No. 2014-28674, which set the proposed general operating millage
rates at 5.8634 mills (excluding debt service) for general operating purposes, and 0.2295 mills for
debt service, a reduction of 0.0234 mills from the FY 2013/14 debt service rate; and
WHEREAS, on August 29, 2014, the Finance and Citywide Projects Committee
recommended a reduction of the general operating millage rate of 0.0692 for a proposed general
operating millage rate at 5.7942 mills (excluding debt service), for a total reduction of 0.0926 mills
from the FY 2013/14 rate for general operating purposes, and 0.2295 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 2014/15 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 2014/15.
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
2014/15, 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 5.7942 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 thirteen and four-tenths percent (13.4%) more
than the "Rolled-back" rate of 5.1076 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 0.2295 mills.
(2) The tentative adopted millage rates for the City of Miami Beach, Florida for FY 2014/15
are subject to a second and final public hearing, herein set for and to be held at 5:01 p.m.,
Tuesday, September 30, 2014, in the City Commission Chambers, City Hall, 1700 Convention
Center Drive, Miami Beach, Florida.
PASSED and ADOPTED this 10th day of September, 2014.
il` Levine, Mayor
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ATTEST:
® APPROVED AS TO
-Ar FORM & LANGUAGE
fael Grana o, Ci lei vIJORP ORATED= &FOR EXECUTION
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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 5.7942 MILLS FOR GENERAL OPERATING
PURPOSES,WHICH IS THIRTEEN AND FOUR-TENTHS PERCENT(13.4%)MORE THAN THE"ROLLED-BACK"
RATE OF 5.1076 MILLS;AND 2)THE DEBT SERVICE MILLAGE RATE OF 0.2295 MILLS;FURTHER SETTING
THE SECOND PUBLIC HEARING TO CONSIDER THE MILLAGE RATE FOR FISCAL YEAR(FY)2014/15, ON
TUESDAY,SEPTEMBER 30,2014 AT 5:01 P.M.
Key Intended Outcome Supported:
Ensure expenditure trends are sustainable over the long term
Supporting Data(Surveys, Environmental Scan, etc.):
In the 2014 Community Survey, both residents and businesses reported the following area for the City related to
value for taxes paid:
• Percentage of residents rating the Overall Value of City services for tax dollars paid as excellent or good
Residents:58%; Businesses 54%
Item Summa /Recommendation:
The Administration is recommending a total combined millage rate for the City of Miami Beach of 6.0237,which
represents a decrease of 0.0926 mills. The proposed operating millage decreased 0.0692 mills and includes a
general operating millage rate of 5.7942 and a General Fund Capital Renewal and Replacement millage of 0.1083.
The proposed voted debt service millage rate is adjusted from 0.2529 to 0.2295, a decrease of 0.0234 mills.The
proposed millage rate decrease of 0.0926 mills represents approximately half of the remaining millage rate reduction
goal of 0.2079 and does not result in a property tax increase to median or average property owners that qualify for the
homestead exemption and the Save Our Homes cap.
The tentatively adopted combined millage rate of 6.0237 mills is 0.0926 mills less than the 6.1163 combined millage
rate for FY 2013/14. The tentatively adopted operating millage of 5.7942 mills for FY 2014/15 is 0.6866 mills more
than the rolled-back rate of 5.1076,and thus,the City is required to publish a Notice of Tax Increase. The proposed
operating millage rate of 5.7942 requires a majority approval(4 of 7 votes)of the Commission.
Advisory Board Recommendation:
Finance&Citywide Projects Committee on July 16"',August 13"',and August 29 2014
Financial Information:
Source of Amount Account
Fund 1
2
O Total
Financial Impact Summary: Including the proposed millage rate for FY 2014/15,the City has decreased the
millage by 0.4213 mills in the last four years and combined millage rates today remain more than 2.6 mills lower,or
31 percent,than in FY 1999/00 and approximately 1.6 mills lower than in FY 2006/07. As a result,the proposed
Property tax levy is approximately$13 million less in FY 2014/15 than it was in FY 2006/07.
City Clerk's Office Legislative Tracking:
Sign-Offs:
p City Manager
6
t
0
AGENDA ITEM Al
1qW M DATE
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Philip Levine and Members of the City C mission
FROM: Jimmy L. Morales, City Manager r y
DATE: September 10, 2014
SUBJECT: A RESOLUTION OF THE MAYOR ND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, ADOPTING: THE TENTATIVE AD VALOREM MILLAGE OF
5.7942 MILLS FOR GENERAL OPERATING PURPOSES,WHICH IS THIRTEEN AND
FOUR-TENTHS PERCENT (13.4%) MORE THAN THE "ROLLED-BACK" RATE OF
5.1076 MILLS; AND 2) THE DEBT SERVICE MILLAGE RATE OF 0.2295 MILLS;
FURTHER SETTING THE SECOND PUBLIC HEARING TO CONSIDER THE MILLAGE
RATE FOR FISCAL YEAR (FY) 2014/159 ON TUESDAY, SEPTEMBER 30, 2014 AT
5:01 P. M.
ADMINISTRATION RECOMMENDATION
The Administration recommends that the City Commission adopt the attached Resolution which
sets the following:
1) Proposed Millage Rates for FY 2014/15:
General Operating 5.6859 mills(5.7551 FY 2013/14, 0.0692 decrease)
Capital Renewal & Replacement 0.1083 mills
Sub-Total Operating Millage 5.7942 mills(5.8634 FY 2013/14, 0.0692 decrease)
Voted Debt Service 0.2295 mills(0.2529 FY 2013/14, 0.0234 decrease)
Total 6.0237 mills (6.1163 FY 2013/14,0.0926 decrease)
2) The tentatively adopted combined millage rate of 6.0237 mills is 0.0926 mills less than the
6.1163 combined millage rate for FY 2013/14. The tentatively adopted operating millage of
5.7942 mills for FY 2014/15 is 0.6866 mills more than the rolled-back rate of 5.1076, 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 2014/15
shall be on Tuesday September 30, 2014 at 5:01 P.M., in the City Commission Chambers,
City Hall, 1700 Convention Center Drive.
The "Rolled-Back" millage rate for FY 2014/15 is the millage rate required to produce the same
level of property tax revenues in the General Fund in FY 2014/15 as anticipated to be received in
FY 2013/14. It is important to note, that the January 1, 2013, tax roll Citywide declined by almost .
$1.02 billion (4.1%) between the July 1, 2013 valuation and the July 1, 2014 valuation due to
appeals, adjustments, etc,which is part of the reason the FY 2014/15"rolled-back rate"is 0.6866
mills lower than the FY 2013/14 current millage rate and lower than it would be if the rolled-back
rate was only adjusted for the increase in revenues generated by higher property values.The area
outside of City Center RDA, which impacts General Fund revenues, declined in value by
approximately$0'.24 billion during the same period of time.
FY 2014/15 Proposed Millage
September 10, 2014
Page 2
The Administration is recommending a total combined millage rate for the City of Miami Beach of
6.0237. The total proposed operating millage decreases to 5.7942 mills,which includes a General
Operating millage rate of 5.6859 and a General Fund Capital Renewal and Replacement millage of
0.1083. The proposed voted debt service millage rate is adjusted from 0.2529 to 0.2295, a
decrease of 0.0234 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 2014/15 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 2014/15.Also included, are budgets for
the Enterprise, Internal Service, and Special Revenue 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. The goal of the Commission has been
to bring them back to that level as property values increase over time. It should be remembered
that between FY 2009/10 and FY 2010/11 values declined by$2.6 billion driving the need for an
increase in the millage.
In FY 2011/12 the City took its first step in that direction with a reduction in the millage rate of 0.05
mills.The millage rate for FY 2012/13 reduced the operating millage by an additional 0.0746 mills.
In the FY 2013/14 budget, the millage rate was reduced 0.2275 mills. 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 Administration is recommending a total combined millage rate for the City of Miami Beach of
6.0237,which represents a decrease of 0.0926 mills. The proposed operating millage decreased
0.0692 mills and includes a general operating millage rate of 5.7942 and a General Fund Capital
Renewal and Replacement millage of 0.1083. The proposed voted debt service millage rate is
adjusted from 0.2529.to-0.2295,a decrease of.0.0234 mills.The proposed millage rate decrease of
0.0926 mills represents approximately half of the remaining millage rate reduction goal of 0.2079
and does not result in a property tax increase to median or average property owners that qualify for
the homestead exemption and the Save Our Homes cap.
FY 2014/15 Proposed Millage
September 10, 2014
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 property tax 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, despite an adjustment of 0.56 mills in the operating tax rate in FY 2010/11,
City of Miami Beach proposed combined millage rates today remain more than 2.6743 mills lower
than in FY 1999/00 (31 percent), and 1.6493 mills lower than 2006/07 (21.5%).
ANALYSIS OF PROPERTY VALUES IN MIAMI BEACH
On.July 1, 2014, the.City received the "2014 Certification of Taxable Value" from the Property
Appraiser's Office stating that the taxable value for the City of Miami Beach is$27.1 billion including
$152.2 million in new construction. The preliminary 2014 value represents an increase of$2.4
billion or 9.9 percent more than the July 1,2013, Certification of Taxable Value of$24.6 billion and
an increase of 9.3 percent, excluding new construction.
The comparative assessed values for the Miami Beach Redevelopment Agency City Center
redevelopment district increased from $3.9 billion to $4.2 billion an increase of$315 million or an
8.1 percent increase over 2013 certified values. In addition,assessed values within the geographic
area formerly known as the South Pointe redevelopment district increased from$3.9 billion to$4.3
billion an increase of$413 million,or a 10.5 percent increase in values over 2013 certified values.
As a result, taxable values in the areas outside the City Center RDA/South Pointe area increased
by 10.2 percent, from $16.9 billion to $18.6 billion, an increase of$1.7 million.
Citywide values excluding City Center increased from $20.8 billion to$22.9 billion, an increase of
$2.1 billion or 10.3 percent. Values outside the City Center area determine General Fund
revenues.
COMPARATIVE ASSESSED VALUES (in billions)
Jan. 1,2014
Value(in Change from 2013
Jan. 1 2013 Value(in billions) billions) Value(Budget)
As of July 1 Revised
2013 Value(For As of July 1
(For FY FY Change in 2013
2013/14 2013/14 2013 (For 2014/15 $
Budget) Projection) Values %Chg. I Budget) (in billions) %Chg
RDA-City Ctr $ 3.8714 $ 3.6341 $(0.2373) -6.1% $ 4.1867 $ 0.3153 8.1%
South Pointe 3.9148 3.7692 (0.1456) -3.7% 4.3275 $ 0.4127 10.5%
General Fund excl 16.8703 16.2354 (0.6349) -3.8% 18.5942 $ 1.7239 10.2%
S.Pte
Total Citywide $24.6565 $23.6387 (1.0178) -4.1% $ 27.1084 $ 2.4519 9.9%
Citywide Net of $20.7851 $20.0046 $(0.7805) -3.8% $ 22.9217 $ 2.1366 10.3%
City Center
FY 2014/15 Proposed Millage
September 10, 2014
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 2014 Certification
of Taxable Value and has been set at$27.1 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$25.7 million. Net of Center City RDA tax increment available to the General Fund,the value of
one mill at 95 percent is $22.0 million.
IMPACTS OF CHANGES IN PROPERTY VALUES
The FY 2013/14 operating millage rate for general City operations was 5.8634 based on July,2013
Certification of Taxable Value. Based on the July 1, 2014 Certification of Taxable Value, 5.8634
mills would generate approximately $165.1 million at 100% collection ($156.9 million at 95%
collection)in general tax revenues,an increase of$14.3 million at 100%collection($13.6 million at
95% collection)over FY 2013/14 property tax revenues Citywide(General Fund, City Center RDA
and the South Pointe area). The General Fund property tax revenues would increase by $11.9
million, if the FY 2013/14 millage rate was maintained.
Further,the January 1, 2013 tax roll Citywide declined by $1.02 billion(4.1%)between the July 1,
2013 valuation and the July 1,2014 valuation due to appeals,adjustments,etc.,which is part of the
reason that the FY 2014/15 "rolled-back rate" is significantly less than the FY 2013/14 current
millage rate.
STATE LEGISLATED OPERATING MILLAGE REQUIREMENTS
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 approval of the Commission Millage is required to approve a millage
up to 7.2121 (equivalent to 3.15 percent increase in property tax revenues). The 3.15 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 7.9333(equivalent to a 10%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 7.9333 up to the 10 mill cap
The proposed operating millage rate of 5.7942 therefore requires a majority approval(4 of 7 votes)
of the Commission.
DETERMINING THE VOTED DEBT SERVICE MILLAGE LEVY
The general obligation debt service payment for FY 2014/15 is approximately$5.9 million. Based
on the July 1,2014 Certified Taxable Value from the Property Appraiser,these bonds would require
the levy of a voted debt service millage of 0.2295 mills.This represents a decrease of 0.0234 mills.
FY 2014/15 Proposed Millage
September 10, 2014
Page 5
COMBINING THE OPERATING AND VOTED DEBT SERVICE MILLAGE LEVY
At the July 23, 2014 Commission meeting,the Commission set the operating millage at the same
level as FY 2013/14 and the voted debt service millage decreased by 0.0234 mills.This represents
a total decrease in the operating millage rate of 0.0234 mills.
On August 29th, the Finance and Citywide Projects Committee voted to reduce the operating
millage rate an additional 0.0692 mills for a combined millage rate reduction of 0.0926 mills
compared to FY 2013/14.
Illustrated below is a comparison of the combined millage rates and ad valorem revenues to the
City of Miami Beach for FY 2013/14 and,FY 2014/15, 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 $2.18 million in renewal and replacement funding. The
proposed millage rate is 1.5% less than FY 2013/14 and 21.5% less than FY 2006/07.
%Inc/(Dec)
i
From From
FY 06/07 FY 13/14 FY'14/15 : Inc/(Dec) FY13/14 FY 06/07
City of Miami Beach Millage Rates 1
Operating 7.1920 5.75511 5.6859, -0.0692
Capital Renewal&Replacement 0.1820 0.1083; 0.1083. 0.0000
Sub-total Operating Millage 7.3740 5.8634'. 5.7942. -0.0692 -1.2% -21.4%
Debt Service 0.2990 0.2529 0.2295 -0.0234 -9.3% -23.20/0
Total 7.67301 6.1163; 6.0237' -0.0926 -1.5% -21.5%
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%), whichever is less. For 2014, the CPI has been determined to be 1.5
percent and therefore,the increase is capped at 1.5%for increased values as of January 1,2014.
Overall, based on the homesteaded properties in the January 1,2013 homestead values as of July
1, 2013 valuation, the median value of homesteaded property in Miami Beach for 2013 was
$132,371, and the average $317,086. Applying the increase to the market value of all existing
homesteaded properties from the 2013 tax roll,and the 1.5 percent CPI adjustment,the impact of
the millage rate adjustment to homesteaded properties would be no increase in property taxes as
shown in the following table.
FY 2014/15 Proposed Millage
September 10, 2014
Page 6
Homesteaded Properties
FY 2014/15
FY 2013114 with 1.5%CPI
Median Average Median Average
2013 Preliminary Taxable Value $ 132,371 $ 317,086 $ 134,357 $ 321,842
City of Miami Beach
Operating $ 776 $ 1,859 $ 778 $ 1,865
Voted Debt 33 80 31 74
Total Miami Beach $ 809 $ 1,939 $ 809 $ 1,939
$Change in Taxes
Operating $ 2 $ 6
Voted Debt (2) (6)
Total Miami Beach $ - $
Source:Miami-Dade County Property Appraisers-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 9.9 percent.
The property value of individual properties may increase more or less than 9.9 percent, but not
more than 10 percent.
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.
TOTAL COMBINED MILLAGE
10.0000
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9e 99 00 01 01 03 04 05 06 07 09 09 10 11 11 13 14 15
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 0.4213 mills in the last four years and combined millage rates today
remain more than 2.6 mills lower,or.31 percent, than in 1999/00 and approximately 1.6 mills lower
than in 2006/07. As a result, the proposed property tax levy is approximately$13 million less in FY
2014115 than it was in FY 2006107.
FY 2014/15 Proposed Millage
September 10, 2014
Page 7
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Property Values Tax Levy including Debt
Property Value, Millage, and Property Tax Levy
Milloge Rctes Tax Levy(in millions)
General Fund
Total
Final/Revised (including S.
Taxable Total Combined Gneral Pointe,and
Taxable Values Taxable Property Values Citywide Fund/RDA Total Tax Levy Renewal&
Chart Values(billions) (billions) Milloge Milloge including Debt Replacement)
FY 1997/98 $ 6.46 $ 6.40 9.2100 7.4990 $ 57.45 $ 46.78
FY 1998/99 $ 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 9.221 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
FY2010/11 $ 22.10 $ 20.97 6.5025 6.2155 $ 136.55 $ 112.14
FY2011/12 $ 21.98 $ 20.75 6.4539 6.1655 $ 134.75 $ 111.29
FY2012/13 $ 23.07 $ 22.021 6.3477 6.0909 $ 139.10 $ 114.32
FY2013/14 $ 24.66 $ 23.641 6.1163 5.8634 $ 143.26 $ 117.41
FY2014/15 $ 27.10 6-0237 5.7942 $ 155.10 $ 127.76
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, Okeechobee Basin, Everglades Project, and the Florida Inland Navigational District.
The countywide tax rate for Miami-Dade County decreased by 0.0345 mills to 4.6690;the library tax
rate increased 0.1115 mills to 0.2840 mills;and the debt service millage increased 0.0280 mills to
0.4500 mills.
The tax rate for the Miami-Dade School District decreased slightly from 7.9770 mills to 7.9740 mills.
The Children's Trust millage is maintained at 0.5000 mills. As a whole, the millage rates for the
FY 2014/15 Proposed Millage
September 10, 2014
Page 8
South Florida Water Management District, Okeechobee Basin, Everglades Project, and Florida
Inland Navigational District decreased.0.0174 mills to 0.4187 mills.
With the proposed rates for FY 2014/15, the Miami Beach portion of the FY 2014/15 tax bill is
approximately 30 percent of the total bill. Of note, the County millage is 0.9830 mills less than their
millage in FY 2006107, as compared to the City's proposed millage which is 1.6493 mills less than
the City millage in FY 2006107. 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.
OVERLAPPING TAX MILLAGE FY 06/07 FY 13/14 FY 14/15 Variance Variance 14/15 from 13/14 from 06/07 Total
City of Miami Beach Millage Rates
Operating 7.1920 S.7551 5.685 -0.0692 -1.5061
Capital Renewal&Replacement 0.1820 0.1083 0.1081 0.0000 -0.0737
Subtotal Operating Millage 7.3740 5.8634 5.794 -0.0692 -1.5798
Voted Debt Service 0.2990 0.2529 0.229 -0.0234 -0.0695
Total 7.673 6.1163 6.023 -0.0926 -1.6493 30%
Miami Dade County
Countywide 5.6150 4.7035 4.669 -0.0345 -0.9460
Library 0.48601 0.1725 0.2840 0.1115 -0.2020
Debt Service 0.2850 0.4220 0.4500 0.0280 0.1650
Subtotal 6.3860 5.2980 5.4030 0.1050 -0.9830 27%
School Board 8.1050 7.9770 7.97 -0.0030 -0.1310 399
Children's Trust 0.4220 0.5000 0.5000 0.0000 0.0780 2%
Other 0.7360 0.4455 0.418 -0.0268 -0.3173 2916
Totaill 23.3220 20.3368 20319 -0.0174 -3.0026 100•/0
Impact of Combined Tax Rates of Overlapping Jurisdictions on Homesteaded Properties
The median and average January 1,2013 taxable values of$132,371 and$317,086, respectively,
will increase by 1.5%CPI in FY 2014/15 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 combined millage rates to the median and average taxable values results in
an additional $38 for the median and a $92 increase for the average. These increases are
mitigated by no increase in property taxes for the median or 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$2,729 for all taxing jurisdictions combined,while the
average taxes generated would be approximately$6,540 per homesteaded property. Of these
taxing jurisdictions, the highest component is the Miami-Dade School Board, at $1,071 for a
median value property, and $2,566 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 2013 values.
FY 2014/15 Proposed Millage
September 10, 2014
Page 9
Impact on Homesteaded Properties Assuming
Changes in Taxable Value from January 1,2014
FY 2014/15
FY 2013/14 with 1.5%CPI
Median I Average Median F verage
2013 Preliminary Taxable Value $ 132,371 $ 317,086 $ 134,357 $ 321,842
City of Miami Beach
Operating $ 776 $ 1,859 $ 778 $ 1,865
Voted Debt 33 80 31 74
Total Miami Beach $ 809 $ 1,939 $ 809 $ 1,939
Miami Dade County 701 1,680 726 1,739
Schools 1,056 2,529 1,071 2,566
Other 125 300 123 296
Total $ 2,691 $ 6,4481$ 2,729 $ 6,540
Change in Taxes
City of Miami Beach
Operating $ 2 $ 6
Voted Debt (2) (6)
Total Miami Beach $ - $
Miami Dade County 25 59
Schools 15 37
Other (2) (4)
Total $ 38 $ 92
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 2014/15 must
be advertised no later than 15 days after the first public hearing. It is recommended that the second
P ublic hearing be set for Tuesday, September 30, 2014 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 2014/15 and establishes a second public hearing to
be held on Tuesday, September 30, 2014, at 5:01 P.M.
JLM/JW