2002-24941 Reso
RESOLUTION NO. 2002-24941
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, SETTING THE
PROPOSED MILLAGE RATES FOR FISCAL YEAR (FY)
2002/03, THE CALCULATED "ROLLED-BACK" RATE, AND
THE DATE, TIME, AND PLACE OF THE FIRST PUBLIC
HEARING; FURTHER AUTHORIZING THE CITY
MANAGER TO TRANSMIT THIS INFORMATION TO THE
MIAMI-DADE COUNTY PROPERTY APPRAISER IN THE
FORM REQUIRED BY SECTION 200.065, FLORIDA
STATUTES
WHEREAS, Section 200.065, Florida Statutes, has specified the method by which
municipalities may fix the millage rate and adopt an annual budget; and
WHEREAS, the City of Miami Beach is required to advise the Miami-Dade County
Property Appraiser of the Proposed Millage Rates, the "Rolled-Back" Rate, and the date, time, and
place of the first public hearing.
NOW THEREFORE, BE IT DULY RESOLVED BY THE MA YORAND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the following
recommendations of the Administration be and are hereby ratified for transmittal to the Miami- Dade
County Property Appraiser, as specified in Section 200.065, Florida Statutes:
1) Proposed Millage Rates for FY 2002/03
General Operating
Debt Service
7.299 mills
1.023 mills
8.322 mills
2)
"Rolled-Back" Rate
6.598 mills
3) The first public hearing on the proposed millage rate and the tentative budget for FY 2002/03
shall be held on Wednesday, September 11,2002 at 5:01 P.M., in the City Commission
Chambers, City Hall, 1700 Convention Center Drive, Mi . ach lorida.
PASSED and ADOPTED, this 31 st day of July, 2002.
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CITY CLERK
APPROVEDNJTO
FORM &LANGUAGI!
FOR
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CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
hltp:\\c1.miami-beach.f1.us
COMMISSION MEMORANDUM NO.
TO:
Mayor David Dermer and
Members of the City Commission
DATE: July 31,2002
FROM:
Jorge M. Gonzalez ~ . A ~
City Manager U r- 0
SUBJECT:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA SETTING 1) THE PROPOSED OPERATING
MILLAGE RATE; 2) THE REQUIRED DEBT SERVICE MILLAGE RATE; 3)
THE CALCULATED "ROLLED-BACK" RATE; AND, 4) THE DATE, TIME,
AND PLACE OF THE FIRST PUBLIC HEARING TO CONSIDER THE
MILLAGE RATES AND BUDGETS FOR FISCAL YEAR (FY) 2002/03;
FURTHER AUTHORIZING THE CITY MANAGER TO TRANSMIT THIS
INFORMATION TO THE MIAMI-DADE COUNTY PROPERTY APPRAISER
IN THE FORM REQUIRED BY SECTION 200.065, FLORIDA STATUTES.
SUMMARY
The Administration is recommending the City's operating millage rate at the current rate of
7.299, and has calculated a decrease of 0.054 in the current debt service millage rate of
1.077 to 1.023. Although the overall millage will decrease (0.054), due to increases in
assessed value there will be a net increase of $17.18 in the amount of taxes that the
average residential homeowner will pay to the City in the coming fiscal year. The School
Board has announced a decrease and the County has announced an overall increase in
the property tax rate, but due to increases in assessed values, the combined impact on the
average homeowner in Miami Beach will be an increase of $64.62.
ADMINISTRATION RECOMMENDATION
The Administration recommends that the Mayor and City Commission adopt the attached
resolution which authorizes the City Manager to transmit the following information to the
Miami-Dade County Property Appraiser:
1) Proposed Millage Rates for FY 2002/03:
General Operating 7.299 mills (7.299 last year)
Debt Service 1.023 mills (1.077 last year)
8.322 mills (8.376 last year)
Agenda Item R 7 A.
Date 7-3/-0~
FY 2002/03 Proposed Millage Rate
July 31,2002
Page 2
2) "Rolled-Back" Rate (Truth in Millage)
6.598 mills
3) The first public hearing to consider the proposed millage rates
and tentative budgets for FY 2002/03 shall be at 5:01 p.m.,
Wednesday, September 11, 2002 in the City Commission
Chambers, City Hall, 1700 Convention Center Drive, Miami
Beach, Florida.
DECISION.MAKING PROCESS
The budget development process has included partic~ation from within and from outside
City Hall. An economic overview was held on June 28 and budget briefings were held on
July 12th and July 19th, to inform the Commission and the citizens of preliminary General
Fund revenue projections and department expenditure requests for FY 2002/03.
The Budget Advisory Committee (BAC) reviewed the proposed budgets of all major
departments and offered comments and suggestions throughout the process. The
Administration conducted a Commission workshop on July 24, 2002, for the purpose of
informing both the Commission and the citizens about the status of the proposed budget.
At that workshop, the Administration provided an overview of the budgets for General
Fund, Enterprise Funds, Resort Tax Fund and the Internal Service Funds. In addition, we
provided detail of recommended new and enhanced services.
Maintaining the basic service level into FY 2002/03 will translate into a total operating
budget (net of RDA) of $145,229,124 which is $15,665,478 or 12.1% greater than the
adopted budget of $129,563,646.
This proposed budget includes new or increased services in the net amount of $1.2 million.
In the Police Department, three sworn Police Officer positions will be moved from
administrative functions to patrol duty in order to enhance the police presence in our
community. Additionally, funding has been provided for an additional info tech position to
support the CAD/RMS system.
In the Fire Department, funding is being provided to implement the minimum staffing
ordinance passed by the Commission on March 20, 2002 to take effect on November 1,
2002. This enhancement will provide the required minimum staffing of four firefighters for
each Ladder Truck, Pumper or Quint, three staff for each Rescue Unit, and one officer for
each EMS Supervisor Unit.
In the Parks Department, we have included funding for the programs, operations and
maintenance of the new Flamingo Park Pool which will be offset by a proposed increase of
user fees for both residents and non-residents. We have also funded the partial year
FY 2002/03 Proposed Millage Rate
July 31, 2002
Page 3
operation of North Shore Park and Youth Center, which is currently under construction and
expected to open during the upcoming fiscal year. The cost of maintaining new
community streetscape projects has also been provided, along with additional bus drivers
to assist with providing transportation for our children who participate in parks programs.
The Parks Department will also reallocate currently funded but vacant positions to provide
for one position to manage contracts and one to develop opportunities for program
sponsorships and fund raising.
In the area of Neighborhood Services, an initiative to provide a passport application office
and increased personnel for an improved citizen response team has been funded, along
with an info tech position to assist with the creation of online newsletter publications
throughout the year.
An additional crew was provided to increase the frequency of sweeping in residential areas
in the North Beach area along with an additional crew for the South Beach Service Team
was funded by the Sanitation Enterprise Fund.
Funding for a new GIS and infrastructure management system has been provided by the
Water, Sewer and Stormwater Enterprise Funds. These enhancements will improve the
geographical mapping capabilities of the City and will be beneficial during the planning and
implementation of the City's Capital Improvement Program and will provide a system
for accurate utility and as-built information to be digitally incorporated into our database.
Additionally, funding has been provided for manhole restoration and expanded capacity to
provide ADA required curb cuts.
Finally, the City will hire a dedicated publicist to promote the City as an important
international tourist and business destination throughout the world which will be funded by
taxes from tourist events and activities.
STATUTORY REQUIREMENTS
FS 200.065, entitled "Method of Fixing Millage" establishes specific guidelines that must be
used by all local government entities in setting millage (property tax) rates. Under the
statute, the City is required, within 35 days of receipt ofthe "Certification ofTaxable Value"
(received July 1, 2002), to advise the Miami-Dade County Property Appraiser of the
proposed general operating millage rate, the calculated "rolled-back" rate and the date,
time, and place of the first public hearing to consider the proposed millage rates and
tentative budgets for FY 2002/03. The required Debt Service millage rate must also be set
at the same time.
After setting the proposed operating millage rate, the Commission may, at any time
prior to the final adoption, lower the rates by adjusting priorities. Increasing the
millage rate may only be accomplished by an expensive mailing and advertising
process to every property owner on Miami Beach.
FY 2002/03 Proposed Millage Rate
July 31,2002
Page 4
ANALYSIS OF PROPERTY VALUES IN MIAMI BEACH
On July 1, 2002, the City received the "2002 Certification of Taxable Value" from the
Property Appraiser's Office stating that the taxable value for the City of Miami Beach is
$10,560,066,688, including $305,716,104 in new construction, which is one of the largest
increases this City has experienced in its recent history.
The preliminary 2002 value represents an increase of 13.9 percent over 2001's final value
of $9,269,079,526. Alternately, the increase is 12.4 percent over 2001's preliminary value
of $9,398,715,152. The difference of $129,635,626 between 2001's preliminary and final
values represents the equalization loss of less than 1.4 percent due to appeals, etc.
The comparative assessed values for the Miami Beach Redevelopment Agency South
Pointe redevelopment district increased by $76.791,644 or 9.1 percent from $840,714,532
to $917,506,176. The assessed values in the City Center redevelopment district increased
by $138,775,486 or 11.4 percent from $1,218,222,763 to $1,356,998,249.
DETERMINING THE OPERATING MILLAGE LEVY
The first building block in developing a municipal budget is the establishment ofthe 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, this value is determined by the
2002 Certification of Taxable
Value and has been set at $10,560,067. Florida Statutes permit a discount of up to five
percent for early payment discounts, delinquencies, etc. For the City of Miami Beach, the
discount utilized is 3.5 percent. Therefore. the 96.5 percent value of the mill is
$10,190,465.
Preliminary budget estimates reveal that the current millage rate of 7.299 mills will be
sufficient to fund a current, basic service level as it presently exists, and selected service
enhancements, into the next year.
The proposed millage rate of 7.299 mills will generate ad valorem tax revenues of
$74,380,204 (of which $13,329,290 will be transferred to the Redevelopment Agencies) for
a net revenue total of $61,050,914 in the General Fund. The total amount is $8,180,026
more than the prior year levy of $66,200,178, reflecting a 12.4 % increase. The net
General Fund ad valorem budget has increased $6,685,273 (12.3%) from $54,365,641 to
$61,050,914.
DETERMINING THE DEBT SERVICE MILLAGE LEVY
The debt service payment for FY 2002103 is $ 10,424,846 and requires a tax rate of 1.023
mills. This rate is 0.054 mills, or five percent (5.0%) less than the FY 2001/02 rate of 1.077
mills. This rate anticipates the sale of $35,000,000 of General Obligation Bonds during FY
FY 2002/03 Proposed Millage Rate
July 31,2002
Page 5
2002/03. These bonds represent the second issue of the $92,465,000 of bonds authorized
by the voters in November 1999, bringing the total amount issued to $65,000,000.
COMBINING THE OPERATING AND DEBT SERVICE MILLAGE LEVIES
Illustrated below is a comparison of the combined millage rates and ad valorem revenues
to the City of Miami Beach for FY 2001/02 (final) and FY 2002/03 (preliminary).
Tax Rate Tax Levy
FY 01/02 FY 02103 Incl(Dec) FY 01/02 FY 02103 Incl(Dec)
General Operating 7.299 7.299 0.000 $65,287,088 $74,380,204 $9,093,116
Debt SelVIce 1.077 ~ ~ 9.633 401 10424.846 791 445
TOTAL !l..ill. ~ (0.054) $74,920,489 $84,805.050 $9,884.561
Ifthese recommended millage rates are tentatively adopted, then the combined tax rate will
decrease by 0.054 mills, or 0.6% less than the current year. The operating millage will
remain constant, and debt service millage will decrease by 0.054 mills, or five percent
(5%).
COMBINING JURISDICTIONAL OPERATING AND DEBT SERVICE MILLAGE LEVIES
City of Miami Beach property owners must also pay property taxes to Miami-Dade County,
the Miami-Dade County School Board, the South Florida Water Management District, and
the Florida Inland Navigation District. In FY 01/02, the Miami Beach portion ofthe total tax
bill was 33.2 percent. The recommended millage rates for FY 2002/03 will place the
Miami Beach portion of the tax bill at 33.1 percent based on tax rates announced by
other Jurisdictions.
Revised FY 2002/03 tax rates may be considered by Miami-Dade County on September 4,
2002. The countywide tax rate will increase to 5.966 mills; the County's debt service will
decrease to 0.390 mills. The Library District has announced that the millage will remain at
0.451 mills. While it is not oossible to determine the exact amount returned in
additional services. it should be noted that Miami-Dade County retumed $9.263.009 durinQ
FY 2001/02 in tax-increment funds for the Redevelooment Aoencv and its two tax-
increment districts.
The Miami-Dade County School Board is scheduled to discuss its final tax rate on
September 12,2002 but has tentatively announced a rate of 9.249 mills; a decrease of
0.127 mills.
The South Florida Water Management District has proposed no increase from the current
rate of 0.697 mills. The South Florida Inland Navigation District has proposed no increase
from the current rate of 0.039 mills.
FY 2002/03 Proposed Millage Rate
July 31,2002
Page 6
Illustrated in the following chart are the current and proposed tax rates for the multiple
taxing authorities.
Adopted Proposed % %of
Taxing Jurisdiction FY 01/02 FY 02103 Incl(Dec) Change Total
Miami Beach
General Operating 7.299 7.299 0.000 0.00 33.1
Debt Service 1.077 1.023 (0.054)
(5.01)
Miami-Dade County
Countywide Operating 5.713 5.966 0.253 4.43 27.1
Library 0.451 0.451 0.000 0.00
Debt Service 0.552 0.390 (0.162) (29.35)
School Board 9.376 9.249 (0.127) (1.35)
36.8
Other 0.736 0.736 (0.000) (0.00)
3.0
Totals 25.204 25.114 (0.090) (0.36) 100.0
COMBINED MILLAGE LEVY IMPACT ON THE HOMEOWNER
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 2002, the CPI
has been determined to be 1.6 percent and therefore, the increase is capped at 1.6% for
increased values as of January 1, 2002. The $25,000 homestead exemption is applied
after the increase in value as follows: assuming that the average residential property in
Miami Beach was valued at $200,000, that value is increased by the 1.6% to a new value
of $203,200. The homestead exemption of $25,000 is then deducted, yielding a taxable
value of $178,200.
Using the proposed tax rates, that value is then taxed as follows:
Taxing
Jurisdiction
Proposed
@ 7.299
~
8.322
Miami Beach
Miami-Dade County
School Board
Other
$17.18
37.71
7.37
2.36
Totals
S 64 62
FY 2002103 Proposed Millage Rate
July 31, 2002
Page 7
At the combined proposed millage rate of 8.322, the total dollars for both operating and
debt service paid to the City when compared to the prior year's taxable value of $200,000
and 8.376 millage rate, would increase by $17.18. The overall taxes would increase by
$64.62. This, of course, assumes that the other taxing jurisdictions adopt these millages.
BUDGET RECOMMENDATION
The Administration recommends that you adopt the operating millage rate of 7.299 mills
and 1.023 mills for debt service, which will maintain current basic service levels, fund
operational costs for projects as they come on-line, and fund enhanced service levels as
possible. In addition, you may select any millage rate up to the constitutional cap of 10
mills.
FIRST PUBLIC HEARING
The first public hearing on the proposed millage rates and tentative budgets for Fiscal Year
2002/03 must be held no later than 80 days (September 18th) or earlier than 65 days
(September 3rd) from the start of the TRIM ("Truth In Millage") calendar (July 1 st). Other
guidelines are: 1) the public hearing cannot be scheduled on a Sunday or on those days
utilized by Miami-Dade County or the Miami-Dade County School Board for their public
hearings; and 2) if on a day other than Saturday, the public hearing must be after 5:00 P.M.
Based on these guidelines, the first hearing must be held between September 3rd and
September 18th. These dates are unavailable for the following reasons:
September 8 & 15
September 4 and 18
September 12
Sundays
Miami-Dade County Public Hearings
Miami-Dade County School Board Public Hearing
Ofthe remaining days, it is recommended that the first public hearing be set for 5:01 P.M.,
Wednesday, September 11, 2002 in the City Commission Chambers, City Hall, 1700
Convention Center Drive.
I wish to take this opportunity to thank the Office of Management and Budget, the Finance
Department, the Department Directors, Assistant City Managers. and all City personnel
that worked so diligently on this budget. The Administration looks forward to continued
assistance from the Budget Advisory Committee, the City Boards and Committees, and
community groups upon release of the Proposed Budget and at the public hearings to be
held in September.
JMG:PDW:JC