98-22895 RESO
RESOLUTION NO.
98-22895
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, ADOPTING A TENTATIVE AD
VALOREM MILLAGE OF 7.499 MILLS FOR GENERAL OPERATING
PURPOSES, WHICH IS FIVE AND EIGHT TENTHS PERCENT (5.8%)
GREATER THAN THE "ROLLED-BACK" RATE OF 7.090 MILLS, AND
1.484 MILLS FOR DEBT SERVICE FOR THE CITY, FOR FISCAL
YEAR 1998/99, SUBJECT TO A SECOND PUBLIC HEARING AT 5:01
P.M., WEDNESDAY, SEPTEMBER 23, 1998.
BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, that, pursuant to Section 200.065, Florida Statutes, there is
hereby levied a tax for the Fiscal Year 1998/99, 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 ~ 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 five and eight tenths
percent (5.8%) greater than the "rolled-back" rate of
7.090 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 ~
mills.
(c) The tentative adopted millage rates for the City of
Miami Beach, Florida for FY 1998/99 is subject to a
second and final public hearing at 5:01 P. M.,
Wednesday, September 23, 1998, in the City Commission
Chambers, City Hall, 1700 Convention Center Drive, Miami
Beach, Florida.
PASSED and ADOPTED this ~ day of Seotember. ~.
1Iit
MAYOR
U~r fOJl~
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
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Cify Attornev
~V98
Daw.
~ITY OF MIAMI BEACH
;ITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
Itlp :\\ci. m iam i-beach. fl. us
.-------
COMMISSION MEMORANDUM NO. ~OL- "''1g
TO:
Mayor Neisen O. Kasdin and DATE: September 10, 1998
Members of the City <;:ommission
Sergio ROdrigui:z .J
City Manager I
A RESOI}lT! ON ADOPTING: 1) THE TENTATIVE AD VALOREM
MILLAGE OF 7.499 MILLS FOR GENERAL OPERATING PURPOSES
WHICH IS FIVE AND EIGHT TENTHS PERCENT (5.8%) GREATER
THAN THE "ROLLED BACK" RATE OF 7.090 MILLS; 2) THE DEBT
SERVICE MILLAGE RATE OF 1.484 MILLS; AND, 3) SETTING 5:01 P. M.,
WEDNESDAY, SEPTEMBER 23, 1998, FOR THE SECOND PUBLIC
HEARING TO CONSIDER THE MILLAGE RATE AND BUDGET FOR
FISCAL YEAR 1998/99.
FROM:
SUBJECT:
RECOMMENDATION:
The Administration recommends that the City Commission adopt the attached Resolution which sets
the following:
1) Tentatively adopted millage rates for FY 1998/99
General Operating 7.499 mills ( 7.499 last year)
Debt Service 1.4-84 mills (1. 711 last year)
Total 8.983 mills ( 9.210 last year)
2) The tentatively adopted combined millage rate of 8.983 mills is .227 mills or 2.5% less
than the 9.210 combined millage rate for FY 1997-98. While the tentatively adopted
millage rate of 7.499 mills for FY 1998-99 is the same as the rate for FY 1997-98, state
statute requires that we advertise that this rate is 5.8% greater than the "rolled-back" rate of
7.090 mills.
3) The second public hearing to consider the final millage rates and budgets for FY 1998/99
shall be at 5:01 P.M., Wednesday, September 23, 1998 in the City Commission Chambers,
City Hall, 1700 Convention Center Drive.
PROCEDURE
Florida Statutes 200.065, requires that at the conclusion ofthe first public hearing on the proposed
tax rate and budget, the City Commission proceed in the following specific manner:
AGENDA ITEM
7{1 A I
q -lo-Q8
DATE
Tentative Operating and Debt Service Millages
September 10, 1998
Page -2 -
1. Adopt a tentative ad valorem millage rate for FY 1998/99 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.
In prior years, we were mandated to read this Resolution aloud, in its entirety.
However, a recent change in state statute requires that only the title be read aloud.
2. Adopt a tentative general operating budget for FY 1998/99. Also included, are budgets for
the Enterprise and Internal Service Funds. This is accomplished by adopting a companion
Resolution. (See accompanying Agenda Item R-7-A-2).
Both the millage and budget Resolutions must be adopted again after a second and final public
hearing.
Procedurally, a millage either greater than or less than 7.499 mills may be adopted at this first
hearing. However, any millage rate adopted at the end of either the first or second public hearings
which exceeds the millage rate of7.999 mills established in July, 1998, and certified to the Property
Appraiser, would require mailin2 of a revised notice of property taxes to each taxpayer. The
notice would be prepared by the Property Appraiser. at the expense of the taxin2 authority.
and must precede the final hearine by 10 to 15 days.
t
ANALYSIS OF PROPERTY VALVES IN MIAMI BEACH
The fundamental building block in developing a municipal budget is the establishment of the value
of one mill of taxation. A mill oftaxation is defined as $1.00 of ad valorem tax for each $1,000 of
property value. It is against this value that the millage rate is applied to determine the total dollars
of ad valorem tax available.
On July 1, 1998, we received the 1998 Certification of Taxable Value from the Dade County
Property Appraiser, containing the assessed real and personal property values in our City. The
preliminary, current-year, gross taxable value of both real and personal property for 1998 is
$6,964,723,252, including $181,746,014 for new construction which is the second largest increase
this City has experienced in its recent history. This represents an increase of 8.6% over the prior
year's final gross taxable value of$6,413,421,838. Alternately, the preliminary value for 1998 of
$6,964,723,252 exceeds the preliminary 1997 value of$6,463,734,814 by $500,988,438, or 7.8%.
Comparing 1997's preliminary value of$6,463,734,814 to its final value of$6,413,421,838 yields
a decrease of $50,312,976, or 0.8%. This is attributed to equalization losses and appeals.
Amendment 10 to the Florida Constitution, known as "Save Our Homes", was enacted to limit the
annual increase in assessed value on homesteaded property to the lesser of three percent (3%) or
the Consumer Price Index (CPI). As such, homesteaded property values were capped at 1.7%, the
CPI increase, by the Property Appraiser in accordance with Amendment 10.
Tentative Operating and Debt Service Millages
September 10, 1998
Page -3 -
Comparing the two districts within the City, South Pointe and City Center, South Pointe received
a smaller assessment value increase than City Center. South Pointe increased by $60,947,373, or
13.1 %, from $464,050,979 to $524,998,352, whereas; City Center increased by $94,278,578, or
17.7%, from $531,364,583 to $625,643,161.
The present value of one mill for the City of Miami Beach has increased from its final value of
$6,413,422 in 1997 to its preliminary value of $6,964,723 in 1998. Statutorily, a mill cannot be
discounted to any value less than 95%. As permitted by state statute, the City of Miami Beach
discounts its mill to 96.5% for a value of$6,720,958.
DETERMINING THE OPERATING MILLAGE LEVY AND AD VALOREM TAXES
Given the current year's operating budget, directives from the Commission, City boards, committees,
residents, and input from the Budget Advisory Committee (BAC), on July 15, 1998, the Commission
set the operating millage rate at 7.999 mills which is twelve and eight tenths percent (12.8%) greater
than the calculated current year roll-back millage rate of7.090 mills.
The proposed millage rate is 7.499 and will generate ad valorem revenues of $50,400,464 (of which
$5,688,071 will be transferred to the Redevelopment Agencies) for a net revenue total of
$44,712,393 in the General Fund. This amount is $2,470,245 greater than the current year projected
revenues of$42,242,148, reflecting a 5.9% increase.
DETERMINING THE DEBT SERVICE MILLAGE LEVY
Debt service millages must be approved by the voters. The debt service rate for FY 98/99 is
$9,973,902 and requires a tax rate of 1.484 mills. This represents a decrease of 0.227 mills, or
thirteen and three tenths (13.3%) percent less than the current year's adopted debt service millage
rate of 1.711 mills.
COMBINING OPERATING AND DEBT SERVICE MILLAGE LEVIES
The combined millage rate for both operating and debt service for FY 1998/99 is illustrated below,
with a comparative analysis between the final FY 1997/98 and the preliminary FY 1998/99 millages.
Tax Rate Tax Levy
FY 97/98 FY 98/99 Inc/(Dec) FY 97/98 FY 98/99 Inc/(Dec)
General Operating 7.499 7.499 0.000 $46,410,951 $50,400,464 $3,989,513
Debt Service LZil 1.484 &m.1 1 0.589.297 9.672.369 (615.395)
TOTAL 9.210 8.983 (0.227) $57.000.248 $60.374.366 $3,374,118
Should the proposed tax rates be adopted, the combined tax rate will decrease by 0.227 mills, or
2.5% less than the previous year as follows: the operating millage will not increase, and the debt
service millage will decrease by 0.227 mills, or thirteen and three tenths percent (13.3%).
Tentative Operating and Debt Service Millages
September 10, 1998
Page -4 -
COMBINING JURISDICTIONAL OPERATING AND DEBT SERVICE MILLAGE LEVIES
A City of Miami Beach property owner remits taxes to the Tax Collector as a result oflevies enacted
by the City Commission, the County Commission, the School Board. the South Florida Water
Management District (SFWMD), and the Florida Inland Navigation District. In all, five agencies
have the authority to levy property taxes on Miami Beach property owners. Miami Beach property
owners contributed 37.6 percent in FY 1992/93 of their total tax bill to the City of Miami Beach; this
amount decreased to 33.3 percent in FY 1997/98. The balance was levied by the four other
jurisdictions. The proposed millage rates for FY 1998/99 will make the Miami Beach portion
of a total tax bill 33.1 percent, a decrease of 0.2 percent, assuming that the millage rates shown
are adopted by the four other jurisdictions.
The table below depicts current and proposed millage rates for all jurisdictions:
Adopted Proposed % % of
Taxing Jurisdiction Millage Millage Incl(Dec) Change Total
FY 97/98 FY 98/99
Miami Beach 33.1
General Operating 7.499 7.499 0.000 0.00
Debt Service 1.711 1.484 (0.227) (13.27)
Dade County 26.5
Countywide Operating 6.023 6.023 (0.000) (0.00)
Library 0.316 0.334 0.018 5.70
Debt Service 0.929 0.837 (0.092) (9.90)
School Board 10.462 10.212 (0.250) (2.39) 37.6
Other 0.747 0.769 0.022 2.95 2.8
Totals 27.687 27.158 (0.529) (1.91 ) 100.0
It is to be noted that at the same time that property owners' contribution of a dollar of tax to the City
has declined from 37.6 cents in FY 1992/93 to a proposed 33.1 cents in FY 1998/99, the tax
contribution to the School Board remains constant at about 37.6 cents out of every tax dollar.
The overall tax rate for a Miami Beach homeowner is 27.158 mills, or 0.529 mills less than the
current year -- a decrease of 1.9 percent.
COMBINED MILLAGE LEVY IMPACT ON THE HOMEOWNER
The impact of these combined millages into tax payments for a homesteaded property whose taxable
value in 1998 was $117,380 is demonstrated below. This net taxable value assumes that the
homeowner has a credit for the $25,000 homestead exemption and that the assessed value of the
homesteaded property was limited to a 1.7% increase from the provisions of Amendment 10.
Tentative Operating and Debt Service Millages
September 10, 1998
Page -5 -
Taxing
Jurisdiction
Proposed
@7.499
Miami Beach
Dade County
School Board
Other
Totals
$(4.73)
8.61
(4.45)
~
$3.80
At a 7.499 millage rate, the total dollars paid annually for both operating and debt service to the City,
when compared to the prior year's taxable value of$115,000 and 7.499 millage rate, would decrease
by $4.73.
SECOND PUBLIC HEARING
The second public hearing on the tentatively adopted millage rate and budget for Fiscal Year
1998/99 must be held no later than 15 days after the first public hearing.
It is recommended that the second public hearing be set for 5:01 P.M., Wednesday, September 23,
1998 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 1998/99 and establishes a second public hearing to
be held on September 23, 1998, at 5:01 P. M.
S;S:JC