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LTC 291-2017 June 1, 2017 Preliminary Assessment Roll EstimateMIAMI BEACH OFFICE OF THE CITY MANAGER NO. LTC# 291-2017 LETTER TO COMMISSION TO: Mayor Philip Levine and Members o the City C DATE: June 2, 2017 SUBJECT: JUNE 1, 2017 PRELIMINARY ASS SSMENT ROLL ESTIMATE The purpose of this Letter to Commission is to transmit the preliminary 2017 property assessment values for the City of Miami Beach. The preliminary figures are an estimate, which are subject to change. Attached is a summary of the 2017 preliminary property assessment values for all municipalities. The preliminary 2017 property assessment values reflect an increase in existing property values from the 2016 Certified Taxable Value ($34.697 billion) to the 2017 Preliminary Taxable Value ($37.294 billion) of approximately 7.5 percent or $2.596 billion. The 2017 Preliminary Taxable Value includes $812 million of new construction compared to $1.156 billion of new construction in the 2016 Certified Taxable Value (a decrease of 30.3 percent or $353 million). July 2016 Certified 33,532,510,312 1,165,246,796 34,697,757,108 ~'i61g,'t~#iMg' 29,085,012,265 Property Tax Revenue Projection Variance June 2017 Preliminary 31,119,000,000 171,964,000 11,352,000 Please note, however, the impact on the General Fund will be affected by the portion of the changes that occurred inside the City's redevelopment areas (RDA areas) versus outside the RDA areas, and could vary from the 7.5 percent increase Citywide. The breakdown between General Fund and RDA areas are still pending, however, this analysis assumes a 10 percent increase in the City Center RDA property values. Applying these assumptions to the General Fund Property Tax revenues would result in a projected increase of approximately $11.3 million of tax revenue citywide for the FY 2017/18 Operating budget. As shown in the table below, the RDA has on average, grown by more than 1 0 percent in three of the last four fiscal years, or an average of 14.8 percent since 2013. As such, there is a strong possibility that the RDA component could grow by more than 10 percent year over year which would reduce the property tax revenues to the General Fund. We typically receive the RDA component with the July 1st values and will provide any updated analysis at that time. LTC-JUNE 1, 2017 PRELIMINARY ASSESSMENT ROLL ESTIMATE Page 2 of2 Prope(ty'As:se$~rnent · Existing Values New Construction July 2013 Certified July 2014 Certified July 2015 Certified July 2016 June 2017 Certified Preliminary 24,578,430,867 26,952,138,331 30,430,853,418 33,532,510,312 36,482,000,000 78,146,022 152,208,101 267,037,447 1' 165,246,796 812,000,000 Total 24,656,576,889 27,104,346,432 30,697,890,865 34,697,757,108 37,294,000,000 Percent Increase 12.0% 9.9% 13.3% 13.0% 7.5% .city o~nte,r fRGJA ·· ~.871[46~,7;31. '4;18s,ees;0:74 .. 4,821,643,185 P,M~;~744,&1i3 •· 6,17o,ooo,ooo Percent Increase 24.3% 8.1% 15.2% 16.4% 10.0% Ci wide Total 20,785,167,158 22,917,663,358 25,876,247,680 29,085,012,265 31,119,000,000 The preliminary 2017 property assessment values also reflect a slowdown in the property value increases we have experienced for the past several years, as shown in the decline from July 2015 increase in certified values to the June 2017 preliminary estimate. Although the June 2017 preliminary property values increased 7.5 percent, the operating budget, on average, has increased by about 5 percent which in FY 2016/17 translated to an increase of about $16 million. Furthermore, as discussed during the FY 2016/17 budget development process, the proposed FY 2017/18 Operating budget will include a proposed reduction in the Parking Fund transfer to the General Fund of $4.4 million. Lastly, the declining trends in Resort Tax collections we have experienced this current fiscal year could potentially result in a lower transfer from Resort Tax to the General Fund in the FY 2017/18 Operating budget. As we move forward in the FY 2017/18 Operating budget development, OBPI will work with Staff to identify efficiencies in order to close any funding gap. I do not, however, anticipate proposing any new enhancements to the General Fund portion of the FY2017 /18 Operating Budget beyond those that have already been incorporated or approved by the City Commission during the course of the current fiscal year. On July 1st, we will receive the certified property assessment values, which will be the values used for budget purposes. Typically the difference between the preliminary and certified values is minor. If you have any questions or need additional information, please feel free to contact me. JLM/CGR \J}~~-- MIAMI-DADE COUNTY PROPERTY APPRAISER 2017 Estimated Taxable Values by Taxing Authority JUNE 1 2017 2016 PRELIMINARY PERCENT CHANGE TAXING AUTORITY FROM 2016 01 MIAMI 11.3% 01 01 MIAMI ( DDA) 12.5% 02 MIAMI BEACH 34,697,757,108 36,482,000,000 5.1% 7.5% 0201MBNORMANDYSHORES 176,059,811 196,200,000 11.4% 11.9% 03 CORAL GABLES 14,389,132,612 15,024,000,000 4.4% 5.1% 04 HIALEAH 8,533,649,696 9,271 ,000,000 8. 11.2% 05 MIAMI SPRINGS 1,050,756,136 1 '117,500,000 6. 7.0% 06 NORTH MIAMI 2,603,435,134 2,838,000,000 9. 9.3% 07 NORTH MIAMI BEACH 2,330,919,734 2,527,000,000 8. 8.9% 08 CPA-LOCKA 751,530,607 803,500,000 6. 6.8% 09 SOUTH MIAMI 1 ,692,410,228 1,781 '1 00,000 5. 5.8% 1 0 HOMESTEAD 2,316,513,457 2,489,500,000 7. 12.5% 11 MIAMI SHORES 97 4, 796,046 1 ,048,400,000 7. 7.8% 12 SAL HARBOUR 4,433,731,559 4,503,000,000 1. 19.8% 13 BAY HARBOR ISLANDS 880,111 ,322 1 ,015,500,000 15. 16.9% 14 SURFSIDE 1 ,689,439,338 1 '778,000,000 5. 26.5% 15 WEST MIAMI 368,149,163 417,000,000 13. 28.2% 16 FLORIDA CITY 460,489,467 462,700,000 0. 1.0% 17 BISCAYNE PARK 176,894,419 193,800,000 9. 10.2% 18 EL PORTAL 129,830,872 147,680,000 13. 14.0% 19 GOLDEN BEACH 952,564,565 1 ,029,875,000 8.1% PINECREST 4,380,870,849 4,551,000,000 3. 4.8% 547,987,077 569,910,000 4. 4.0% 1 ,986, 106,744 2,064,400,000 3. 4.7% N. BAY VILLAGE 959,707,508 1,028,200,000 7.5% 8,339,284,877 8,615,900,000 3.6% 1,557,673,900 1 ,629,400,000 4.6% 6.4% VIRGINIA GARDENS 243,065,483 261,000,000 7.4% 7.4% HIALEAH GARDENS 1,091,423,081 1 '154,200,000 5.8% 7.0% AVENTURA 9,901 ,694,244 10,081,700,000 1.8% 1.9% UNINCORPORATED 66,613,469,754 70,591 ,000,000 6.0% 7.5% 1 SUNNY ISLES BEACH 10,111 ,428,895 10,291 ,000,000 1.8% 9.6% 2,809,602,232 2,980,200,000 6.1% 8.5% 2,659,717,359 2,805,800,000 5.5% 5.7% MIAMI GARDENS 3,840,602,830 4,084,400,000 6.4% 9.3% 11 '134,952,688 11,510,000,000 3.4% 8.0% CUTLER BAY 2,234,838,286 2,369,000,000 6.0% 6.2% 251,337,011,475 264,010,000,000 5.0% 8.2% 140,871,793,499 148,129,000,000 5.2% 8.0% 230,877,177,404 242,232,000,000 4.9% 7.8% 284,845,924,926 296,811,000,000 4.2% 7.0% FL WATER MNGT DIST 253,337' 152,718 266,203,000,000 5.1% 8.3% 253,337' 152,718 266,203,000,000 5.1% 8.3% CHILDREN'S TRUST 2 000 000 5.1% 8.3%