2014-28859 Reso RESOLUTION NO. 2014-28859
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ADOPTING: 1) THE FINAL 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 FOR FISCAL YEAR (FY) 2014/15.
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, at the first public hearing on September 10, 2014, the Mayor and Commission
tentatively adopted the operating millage rate of 5.7942 mills for general operating purposes, and
0.2295 mills for debt service; and
WHEREAS, at the second public hearing on September 30, 2014, the Mayor and City
Commission passed and adopted Resolution No. 2014-28759 which adopted the final operating
millage rate of 5.7942 mills for general operating purposes, and 0.2295 mills for debt service; and
WHEREAS, on November 17, 2014, the City of Miami Beach received the Florida
Department of Revenue's (DOR) notice that the City of Miami Beach was not in compliance with
Truth-in-Millage (TRIM) law due to an error in the Budget Summary advertisement published in
the Miami Herald on September 25, 2014; and
WHEREAS, a special City Commission meeting to hold the new final hearing as provided
in DOR's notice has been scheduled for December 2, 2014 and has been duly advertised; and
WHEREAS, Section 200.065, Florida Statutes, requires that at the conclusion of the
special public hearing on the City's proposed tax rate and budget, the City Commission: 1) adopt
the final 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
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 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.
PASSED and ADOPTED this 2nd day of December, 2014.
I Levine, Mayor
ATTEST:
APPROVED AS TO
FORM & LANGUAGE
&FOR EXECUTI N
Rafa Granado, Ci
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A.:
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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 FINAL 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
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 tentatively adopted 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 tentatively adopted voted debt service millage rate is adjusted from
0.2529 to 0.2295,a decrease of 0.0234 mills.The tentatively adopted 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 tentatively adopted operating millage rate of 5.7942 requires a majority
approval (4 of 7 votes)of the Commission.
This item was originally adopted on September 30, 2014. On November 17,2014,the Florida Department
of Revenue(DOR)officially notified the City of Miami Beach that we are not in compliance with Truth-in-
Millage(TRIM)law due to an error in the Budget Summary advertisement posted in the Miami Herald on
September 25, 2014. Per DOR's requirements, this item will re-adopt the final ad valorem millage rate for
general operating purposes.
Advisory Board Recommendation:
Finance&Citywide Projects Committee on July 16'r,August 13'", and August 29 2014
Financial Information:
Source of Amount Account
Fu 1
2
Total
Financial Impact Summary: Including the tentatively adopted 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 tentatively adopted 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:
ctor Assistant City Mana er Cit Mana er
NDA ITEM
NW M I AM I B E SATE
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 f the City ommission
FROM: Jimmy L. Morales, City Manager
DATE: December 2, 2014
SUBJECT: A RESOLUTION OF THE MAYOR A D CITY COMMISSION OF THE CITY OF MIAMI
BEACH,,FLORIDA, ADOPTING: 1) THE FINAL 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
TRIM COMPLIANCE
This item was originally adopted on September 30, 2014. On November 17, 2014, the Florida
Department of Revenue (DOR) officially notified the City of Miami Beach that we are not in
compliance with Truth-in-Millage(TRIM)law due to an error in the Budget Summary advertisement
posted in the Miami Herald on September 25, 2014. Per DOR's requirements, this item will re-
adopt the final ad valorem millage rate for general operating purposes.
ADMINISTRATION RECOMMENDATION
The Administration recommends that the City Commission adopt the attached Resolution which
sets the following:
1) Final 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 final combined millage rate of 6.0237 mills is 0.0926 mills less than the 6.1163 combined
millage rate for FY 2013/14. The final 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 "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
FY 2014/15 Final Millage
December 2, 2014
Page 2
outside of City Center RDA, which impacts General Fund revenues, declined in value by
approximately$0.24 billion during the same period of time.
The Administration is recommending a total combined millage rate for the City of Miami Beach of
6.0237. The total final 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 final voted debt service millage rate is adjusted from 0.2529 to 0.2295,a decrease of
0.0234 mills.
The final adopted millage rate provides funding in the proposed budget to partially offset the
following:
• 3 percent Cost of Living Adjustment(COLA)
2 percent merit increases for employees to their maximum of pay ranges
• 9 percent increase in Health Insurance and 7 percent increase in Dental Insurance
• 3.9 percent increase in internal service charges
• $2.1 million in program and service level enhancements
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).
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.
FY 2014/15 Final Millage
December 2, 2014
Page 3
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 final 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 final voted debt service millage rate is adjusted
from 0.2529 to 0.2295, a decrease of 0.0234 mills. The final 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.
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 final 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.
FY 2014/15 Final Millage
December 2, 2014
Page 4
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. 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
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.
FY 2014/15 Final Millage
December 2, 2014
Page 5
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 final 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.
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.
The combined millage rate reduction of 0.0926 mills was tentatively adopted by the City
Commission at the first public hearing on September 10, 2014.
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
final millage rate is 1.5% less than FY 2013/14 and 21.5% less than FY 2006/07.
FY 2014/15 Final Millage
December 2, 2014
Page 6
%Inc/(Dec)
rom Trom
FY 06/07 FY 13/14 .FY 14115,; Inc/(Dec) FY13/14 FY 06/07
City of Miami Beach Millage Rates
Operating 7.1920 5.7551 5.6859; -0.0692
Capital Renewal&Replacement 0.1820 0.10831 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% -23.2%
Total 7.6730 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.
Homesteaded Properties
FY 2014/15
FY 2013/14 with 1.5%CPI
Median Average Median I Average
2013 Preliminary Taxable Value $ 132,371 $ 317,086 $ 134,357 $ 321,842
City of Miami Beach
Operating $ 776 $ 1,859 $ 77E$ 1,865
Voted Debt 33 80 374
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.
FY 2014/15 Final Millage
December 2, 2014
Page 7
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
i0.00o0 -
9.0000 -
&0" .... ... ... ... _. ... ... ... --------
7.0000..
yN
P &0000 .. .. .... -. .-
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d 5.0000 :.
R
4.0000 — - - —
10000.. ... ... ... ... ... ... ... ... ... ... ... .... ... ... ... _. ... ..
Loom
Q0000
9a 99 00 02 o: 03 0e 05 06 07 08 09 10 11 u B is is
Fiscal Years
i
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.
240
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220
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> 200 20 <
180 = r
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'07 '08 '09 10 11 12 13 14 15
Property Values -- --Tax Levy including Debt
FY 2014/15 Final Millage
December 2, 2014
Page 8
Property Value, Millage, and Property Tax Levy
Miiloge Rates Tax le (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 I Values)billions) )billions) Millage Milloge including Debt Replacement)
FYI 997/98 $ 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
FY1999/00 $ 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 $ 1'10.74 $ 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 $ 21.98 $ 20.75 .6.4539 6.1655 $ 134.75 $ 111.29
FY2012/13 $ 23.07 $ 22.02 6.3477 6.0909 $ 139.10 $ 114.32
FY2013/14 $ 24.66 $ 23.64 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. These
taxing authorities represent 70 percent of a Miami Beach property owner's tax bill.
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
South Florida Water Management District, Okeechobee Basin, Everglades Project, and Florida
Inland Navigational District decreased 0.0174 mills to 0.4187 mills.
With the final 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 2006/07, as compared to the City's final adopted millage which is 1.6493 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.
FY 2014/15 Final Millage
December 2, 2014
Page 9
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 5.7551 5.685 -0.0692 -1.5061
Capital Renewal&Replacement 0.182 0.1083 0.10831 0.0000 -0.0737
Subtotal Operating Millage 7.3740 5.8634 5.794 -0.0692 -1.5798
Voted Debt Service 0.2990 0.2529 0.2295 -0.0234 -0.0695
Total 7.6730 6.1163 6.023 -0.0926 -1.6493 30%
Miami Dade County
Countywide 5.6150 4.7035 4.669 -0.0345 -0.9460
Library 0.4860 0.1725 0.284 0.1115 -0.2020
Debt Service 0.2850 0.4220 0.450 0.0280 0.1650
Subtotal 6.3960 5.2980 5.40 0.1050 -0.9830 27%
School Board 8.1050 7.9770 7.974 -0.0030 -0.1310 39%
Children's Trust '0.42201, 0.5000 0.5000 0.0000 0.0780 2%
Other 0.7360 1 0.44551 0.418 -0.0268 -0.3173 2%
Total 23.322 20.33601 20.319 -0.0174 -3.0026 100%
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 final 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 Final Millage
December 2, 2014
Page 10
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 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
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 $ 6,448 $ 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)
I
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.
CONCLUSION
The Administration recommends adoption of the attached Resolution which adopts final operating
and debt service millage rates for FY 2014/15.
JLM/JW
68 SATURDAY,NOVEMBER 22,2014 HI LOCAL&STATE Miamil-lerald,com I MIAMI HERALD
MIAMBEACH
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 Commission
I Chambers,3rd floor,City Hall,1700 Convention Center Drive.,Miami Beach,
I/Frida,on Tuesday,Decerhber 2,2014,to consider the following:
5:01 pan.
A Resolution Adopting:1)The Final Ad Valorem Millage Of5.7942 Mills For
General Operating Purposes,Which Is Thirteen And Four-Tenths Percent
(13.4%)MoreThan'The"Rolled-Back"Rate Of 5.1076 Mills;And 2)The Debt
Service Millage Rate Of 0.2295 Mills For FlscalYear JFY)2014115.Inquiries
may be directed to the Budget&Performance Improvement Office at
305.673.7510.
5:01 P.M.
A Resolution Adopting Final Budgets For"The General,G.O.Debt Service,
RDA Ad Valorem Taxes, Enterprise, Internal Service Funds, and Special
Revenue Funds For Fiscal Year(FY)2014115.Inquiries maybe directed to
the Budget&Performance Improvement Office at 3225.6737510.
5.02 p.m.
A Resolution Of The Board Of Directors Of The Normandy Shores Local
Government Neighborhood Improvement District.Adopting The Final Ad
Valorem Millage Rate.Of 11305 Mills For Fiscal,Year IFY)2014/15 For The
Normandy Shores Local Government.District,Which Is One Percent(1.0%)
LessTha nThe"Rolled-Back!'Rate Of 1.13.91.Mills.Inquiries maybe directed
to the Budget&Performance Improvement Office at 305.673.7510.
5:02 p.m.
A Resolution Of The Board Of Directors Of The Normandy Shores Local
Government Neighborhood Improvement District Adopting'The Final
Operating Budget For Fiscal Year(FY)2014/15.Inquiries maybe directed to
the Budget&Performance Improvement Office at 305.673.7510.
5:03 p.m.
A Resolution Adopting The Final Capital Improvement Plan For Fiscal
Years(FY)2014il5-2018119 AndAdapting The City Of Miami Beach Final
Capital Budget For(FY)2014115.Inquiries may be.directed to the Budget&
Performance Improvement Office at-305.673.7510.
5.04 P.M.
A Resolution Of The Chairperson And Members Of The Miami Beach
Redevelopment Agency, Adopting And Appropriating The Operating
Budget For The City Center Redevelopment.Area,The Anchor Shops
And Parking Garage,And The Pennsylvania Avenue Shops And Parking
Garage For Fiscal Year 201411 5.Inquiries may be directed to the Budget&
Performance Improvement Office at 305,67175 10.
5.05 ptm.
A Resolution Of The Chairperson And, Members Of The Miami Beach
Redevelopment Agency (RDA),Adopting And Appropriating The Miami
Beach Redevelopment Agency Capital Budget for Fiscal Year(FY)2014"15
And Adopting The Capital Improvement Plan For Fiscal Years 2014115
Through 2018119.Inquiries may be directed to the Budget&Performance
Improvement Office at 305.673,75tO.
6:06 p.m.
A Resolution Adopting The First Amendment To The Capital Budget
For Fiscal Year(FY)2014115. Inquiries may be directed to the Budget&
Performance Improvement Office at 305.6737510.
Interested part.ies 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,do the City Clerk,1700 Convention Center Drive, 11'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, la Floor,City Hall,Miami Beach,
Florida 33139.This meeting,or any item therein,may be continued,and
under such circumstances,additional legal notice need not be provided.
Pursuant to Section 286.0105,Fla.Stat.,the City hereby advises the public
thatif a person decidestoappeal any decision made by the City Commission
with respect to any matter considered nsidered 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 alternate format,sign language interpreter(five-
day notice required),information on access for persons.with disabilities,
and/or any accommodation to review any document or participate in any
City-sponsored proceedings, call 305.604.2489 and select I for English
or 2 for Spanish,then option 6;TTY users may call Via 711(Florida Relay
Service).
Rafael E.Granado,City Clerk
City of Miami.Beach