Resolution 2018-30429RESOLUTION NO. 2018 -30429
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)
2018/19; AND, 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 set the millage rate and adopt an annual budget; and
WHEREAS, development of the FY 2018/19 budget began early in the year and has
included several discussions with the City Commission that included a review of priorities,
economic projections and their impacts on the budget, preliminary projected revenues, and
expenditures; and
WHEREAS, over the last several years, the City of Miami Beach has adopted budgets
that have provided tax and fee relief, while at the same time providing improved levels of services
that address needs and priorities identified by the community; and
WHEREAS, maintaining and enhancing the City's priorities have become increasingly
more challenging due to a slowdown in the increase of property values, declining property tax
rates, and increasing personnel costs which include pension - related costs; and
WHEREAS, the July 1, 2018 Certification of Taxable Value from the Miami -Dade County
Property Appraiser reflects a 4.0 percent increase in citywide property tax values from the July 1,
2017 tax roll certification, a 5.1 percent increase in property tax values in the City Center
Redevelopment Area (RDA), and a 3.8 percent increase in property tax values outside the City
Center RDA, which directly impacts the City's General Fund property tax revenues; and
WHEREAS, the City's current general operating millage rate is comprised of a general
millage, which funds operating costs in the General Fund, and a renewal and replacement millage,
which provides a dedicated source of funding for capital renewal and replacement projects that
extend the useful life of General Fund capital assets; and
WHEREAS, at the May 24, 2018 Commission Budget Workshop, and at the June 8, 2018
and July 13, 2018 Finance and Citywide Projects Committee budget briefings for the development
of_ the proposed FY 2018/19 operating and capital budgets, the Administration recommended that
the general operating millage rate be comprised of an additional millage rate established for "Pay -
As- You -Go" (PAYGO) capital funds, which will provide dedicated funding for General Fund capital
projects and allow for growth over time with property values; and
WHEREAS, at the May 24, 2018 Commission Budget Workshop, and at the June 8, 2018
and July 13, 2018 Finance and Citywide Projects Committee budget briefings for the development
of the proposed FY 2018/19 operating and capital budgets, the Administration recommended that
the proposed FY 2018/19 "Pay -As- You -Go" (PAYGO) millage rate be set to the equivalent of the
$2,400,000 already proposed in the FY 2018/19 operating budget based on the July 1, 2018
Certification of Taxable Value from the Miami -Dade County Property Appraiser; and
WHEREAS, based on the July 1, 2018 Certification of Taxable Value received from the
Miami -Dade County Property Appraiser, the consensus was to set the total operating millage,
including the additional millage rate established for dedicated "Pay -As- You -Go" (PAYGO) capital
funds that would be offset entirely by a decrease in the City's general millage rate, at 5.7288 mills
and to set the voted debt service millage rate at 0.1660 mills, for a total combined millage rate of
5.8888 mills, which is the same as the total combined millage rate adopted in FY 2017/18; and
WHEREAS, the City of Miami Beach is required to notify 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; and
WHEREAS, the January 1, 2017 tax roll declined by $758.1 million between the certified
July 1, 2017 valuation and the final July 1, 2018 valuation due to appeals and adjustments, which
is part of the reason why the FY 2018/19 "rolled- back" rate is 5.4727, which is 0.2497 mills lower
than the adopted FY 2017/18 total general operating millage rate of 5.7224 mills.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND 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 2018/19:
General Millage
Capital Renewal & Replacement Millage
Pay -As- You -Go (PAYGO) Millage
Total General Operating Millage
Voted Debt Service Millage
Total Combined Millage
2) "Rolled - Back" Rate
5.6298 mills
0.0235 mills
0.0755 mills
5.7288 mills
0.1600 mills
5.8888 mills
5.4727 mills
3) The first public hearing to consider the proposed millage rates and budgets for FY
2018/19 shall be held on Wednesday, September 12, 2018, at 5:01 P.M., in the
City Commission Chambers at 1700 Convention Center Drive, 3rd Floor, Miami
Beach, Florida 33139.
ATTEST:
PASSED and ADOPTED, this 25th day of July, 2018.
Rafael . Granado, City Clerk
APPROVED AS TO
FORM & LANGUAGE
FOR EXE UTION
4-L CI
City Attorn Dote
MIAM
BEACH
Resolutions - R7 E
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: July 25, 2018
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) 2018/19; AND, 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.
RECOMMENDATION
See attached Memorandum.
Legislative Tracking
Budget and Performance Improvement
ATTACHMENTS:
Description
a Memo - FY 2018/19 Proposed Millage
Page 1059 of 1464
BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
TO:
FROM:
DATE:
SUBJECT:
COMMISSION MEMORANDUM
Mayor Dan Gelber and Members of the City Commission
Jimmy L. Morales, City Manager
July 25, 2018
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) 2018/19; AND, 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
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 2018/19:
General Millage
Capital Renewal & Replacement Millage
Pay -As- You -Go (PAYGO) Millage
Total General Operating Millage
Voted Debt Service Millage
Total Combined Millage
2) "Rolled- Back" Rate (Truth in Millage)
5.6298 mills
0.0235 mills
0.0755 mills
5.7288 mills
0.1600 mills
5.8888 mills (same as last fiscal year)
5.4727 mills
3) The first public hearing to consider the proposed millage rates and budgets for FY 2018/19
shall be held on Wednesday, September 12, 2018, at 5:01 p.m., in the City Commission
Chambers at 1700 Convention Center Drive, 3rd Floor, Miami Beach, Florida 33139.
The "rolled -back" millage rate for FY 2018 /19_is_the millage_ rate_ required__ to produce__ the same
level of property tax revenues in the General Fund in FY 2018/19 as anticipated to be received in
FY 2017/18. It is important to note that the January 1, 2017 citywide tax roll declined by almost
$758.1 million between the July 1, 2017 certified valuation and the July 1, 2018 final valuation
due to appeals, adjustments, etc., which is part of the reason the FY 2018/19 "rolled- back" millage
rate is 0.2497 mills lower than the FY 2017/18 general operating millage rate and is lower than it
would have been if the "rolled- back" rate was only adjusted for the increase in revenues generated
Page 1060 of 1464
FY 2018/19 Proposed Millage Rate
July 25, 2018
Page 2
by higher property values. The area outside of the City Center Redevelopment Area (RDA), which
impacts General Fund revenues directly, decreased in value by approximately $525.2 million
during the same period.
The proposed millage provides funding to offset increases for personnel costs, such as a 1
percent cost of living adjustment, effective April 1, 2019; a 5% step increase for all Fraternal Order
of Police (FOP) and International Association of Fire Fighters (IAFF) personnel; 0 -3% percent
performance -based merit increase for all non -FOP and IAFF personnel; the impact of annualized
costs for expenditures added per direction received from the City Commission during FY 2017/18;
and other increases for operating and internal services funds expenditures.
In FY 2017/18, the Administration adopted a total combined millage rate for the City of Miami
Beach of 5.8888 mills, which is the lowest rate in at least 20 years.
There are two main components to the City's total combined millage rate: the operating millage
rate and the voted debt service millage rate. The operating millage rate, which is comprised of a
general and a renewal and replacement millage, funds operating costs in the General Fund while
the debt service millage rate funds debt service for previously issued General Obligation (G.O.)
bonds. In FY 2018/19, the projected debt service payment is $5.9 million, which requires the levy
of a voted debt service millage rate of 0.1600 mills. The FY 2018/19 debt service millage rate is
0.0064 mills less than in FY 2017/18 and this difference is proposed to be applied to the general
operating millage rate, as approved by the Finance and Citywide Projects Committee ( FCWPC)
at the June 8, 2018 and July 13, 2018 budget briefings.
Commencing FY 2018/19, as presented and recommended during the City Commission's Budget
Workshop held on May 24, 2018, and approved by the FCWPC at the June 8, 2018 and July 13,
2018 budget briefings, the operating millage rate will be comprised of an additional millage rate
for Pay -As- You -Go (PAYGO) capital funds, which will provide dedicated funding and allow for
growth over time with property values. This additional dedicated millage rate, equivalent to $2.4
million included in the proposed FY 2019 General Fund budget, will be offset entirely by a
decrease in the City's general millage rate. Overall, the City's total combined millage rate for FY
2018/19 is proposed to remain flat as reflected below:
FY 2017/18 FY 2018/19
Adopted Proposed
General 5.6989 5.6298
Capital Renewal & Replacement 0.0235 0.0235
Pay -As- You -Go (PAYGO) 0.0000 0.0755
Inc / (Dec)
(0.0691)
0,0000
0.0755
Total General Operating Millage
Debt Service
5.7224 5.7288
0.1664 0.1600
0.0064
(0.0064)
Total Combined Millage 5.8888
5.8888 0.0000
ANALYSIS OF PROPERTY VALUES IN MIAMI BEACH
On July 1, 2018, the City received the 2018 Certification of Taxable Value from the Miami -Dade
County Property Appraiser's Office indicating that the taxable value for the City of Miami Beach
was $38.9 billion, which included $186.1 million in new construction. Property taxes comprise
approximately 54% of total General Fund revenues.
Page 1061 of 1464
FY 2018/19 Proposed Millage Rate
July 25, 2018
Page 3
The following table shows the difference between the preliminary June 1, 2018 values and
certified July 1, 2018 values, and the impact on projected FY 2018/19 property tax revenues:
The preliminary June 1, 2018 property tax revenue projections assumed the City Center RDA
would increase by approximately 3.9 percent over the certified July 1, 2017 values based on
historical trends. However, based on the certified July 1, 2018 values received, the City Center
RDA increased approximately 5.1% over the certified July 1, 2017 values, thereby slightly
decreasing the citywide total by a greater percentage than originally projected.
The comparative assessed values for the City Center RDA increased from $5.7 billion to $6.0
billion, which is an increase of approximately $290 million, or 5.1 percent, over the certified 2017
values. Citywide values, excluding the City Center RDA district, increased from $31.7 billion to
$32.9 billion, which is an increase of $1.2 billion, or 3.8 percent, over the certified 2017 values.
Comparative Assessed Values Citywide vs. City Center RDA
January 1, 2017 Value (in billions)
January 1, 2018 Value (in billions)
July 1, 2017
(FY2017/18
Budget)
Revised
Value
(FY2017/18
Projection)
Change in
2017
Values
Chg.
July 1, 2018
(FY2018/19
Budget)
$ Change.
(in billions)
% Chg.
Total Citywide
$ 37.397
$ 36.639
$ (0.758)
-2.0%
$ 38.888
$ 1.491
4.0%
City Center RDA
$ 5.703
5.470
$ (0.233)
-4.1%
$ 5.993
$ 0.290
5.1%
Citywide - Net of City Center RDA
$ 31.694
$ 31.169
$ (0.525)
-1.7%
$ 32.894
$ 1.200
3.8%
VALUE OF ONE MILL OF TAXABLE VALUE
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 every $1,000 of property
value. For the City of Miami Beach, the value for each mill for the proposed FY 2018/19 budget
is determined by the 2018 Certification of Taxable Value, which has been set at $38.9 million.
Florida Statutes permit a discount of up to five percent for early payment discounts, delinquencies,
etc. Therefore, the 95 percent _value of one _mill citywide is $36.9 million. Net of Center City RDA
tax increment available to the General Fund, the value of one mill at 95 percent is approximately
$31,8 million.
Page 1062 of 1464
June 2018
Preliminary
July 2018
Certified
Property Assessment
Existing Values
38,556,000,000
38,701,545,195
New Construction
97,000,000
186,115,906
Total
38, 653, 000, 000
38, 887,661,101
City Center RDA
5,927,316,190
5,993,199,959
Citywide Total
32,725,683,810
32,894,461,142
Property Tax Revenue Projection 181,200,000
182,168,000
Property Tax Revenue Projection Variance 968,000
The preliminary June 1, 2018 property tax revenue projections assumed the City Center RDA
would increase by approximately 3.9 percent over the certified July 1, 2017 values based on
historical trends. However, based on the certified July 1, 2018 values received, the City Center
RDA increased approximately 5.1% over the certified July 1, 2017 values, thereby slightly
decreasing the citywide total by a greater percentage than originally projected.
The comparative assessed values for the City Center RDA increased from $5.7 billion to $6.0
billion, which is an increase of approximately $290 million, or 5.1 percent, over the certified 2017
values. Citywide values, excluding the City Center RDA district, increased from $31.7 billion to
$32.9 billion, which is an increase of $1.2 billion, or 3.8 percent, over the certified 2017 values.
Comparative Assessed Values Citywide vs. City Center RDA
January 1, 2017 Value (in billions)
January 1, 2018 Value (in billions)
July 1, 2017
(FY2017/18
Budget)
Revised
Value
(FY2017/18
Projection)
Change in
2017
Values
Chg.
July 1, 2018
(FY2018/19
Budget)
$ Change.
(in billions)
% Chg.
Total Citywide
$ 37.397
$ 36.639
$ (0.758)
-2.0%
$ 38.888
$ 1.491
4.0%
City Center RDA
$ 5.703
5.470
$ (0.233)
-4.1%
$ 5.993
$ 0.290
5.1%
Citywide - Net of City Center RDA
$ 31.694
$ 31.169
$ (0.525)
-1.7%
$ 32.894
$ 1.200
3.8%
VALUE OF ONE MILL OF TAXABLE VALUE
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 every $1,000 of property
value. For the City of Miami Beach, the value for each mill for the proposed FY 2018/19 budget
is determined by the 2018 Certification of Taxable Value, which has been set at $38.9 million.
Florida Statutes permit a discount of up to five percent for early payment discounts, delinquencies,
etc. Therefore, the 95 percent _value of one _mill citywide is $36.9 million. Net of Center City RDA
tax increment available to the General Fund, the value of one mill at 95 percent is approximately
$31,8 million.
Page 1062 of 1464
FY 2018/19 Proposed Millage Rate
July 25, 2018
Page 4
DETERMINING THE VOTED DEBT SERVICE MILLAGE LEVY
The General Obligation (G.O.) Bond debt service payment for FY 2018/19 is projected to be $5.9
million. Based on the July 1, 2018 certified taxable values received from the Miami -Dade County
Property Appraiser's Office, this debt service payment would require the levy of a voted debt
service millage of 0.1600 mills, which represents a decrease of 0.0064 mills over the FY 2017/18
voted debt service levy of 0.1664 mills.
IMPACT OF PROPOSED MILLAGE LEVY IMPACT ON PROPERTY OWNERS
Homesteaded Properties
In 1992, voters approved an amendment to the Florida Constitution known as Amendment 10, or
Save Our Homes (SOH). SOH is an assessment limitation, or "cap ", on increases in the assessed
value of a homestead residence. Those increases are limited to 3% or the percent change in the
CPI (Consumer Price Index), whichever is less. The "cap" goes into effect beginning the year after
a homestead exemption is granted.
Based on the January 1, 2018 homesteaded property values as of July 1, 2018, the median value
of homesteaded property in Miami Beach was $186,172 and the average was $473,353
(assuming a 2.1 percent increase over 2017 median and average homesteaded property values
pursuant to SOH). The impact of the proposed millage rate adjustment to homesteaded properties
in Miami Beach would be an increase of $24 for the median and an increase of $58 for the average
value homesteaded property as reflected in the table below:
Homesteaded Properties
FY 2017/18
FY 2018/19
Median **
Average **
Median
Average
$ 473,3537
Preliminary Taxable Value **
$ 182,3431
$ 463,617
$ 186,172
City of Miami Beach
Operating
Voted Debt
$ 1,043
30
$ 2,653
77
$ 1,067
30
$ 2,712
76
Total Miami Beach
$ 1,073
$ 2,730
$ 1,097
$ 2,788
$ Change in Taxes
Operating
Voted Debt
$ 24
-
$ 59
(1)
Total Miami Beach
$ 24
$ 58
* *Source: Miami -Dade County Property Appraiser's - 2017- average- median- homestead - residential-
values file
Historical Perspective
It is important to note that in prior years, the City of Miami Beach significantly reduced tax rates
as-property values increased. Between F -Y 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. Further, the proposed City of Miami Beach combined
millage rate for FY 2018/19 is the lowest it has been in at least 20 years and is equivalent to the
total combined millage rate adopted in FY 2017/18.
Page 1063 of 1464
FY 2018/19 Proposed Millage Rate
July 25, 2018
Page 5
STATUTORY REQUIREMENTS
Florida Statute 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
Florida Statute, the City is required, within 35 days of receipt of the "Certification of Taxable Value"
(received July 1, 2018), 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 budgets for FY 2018/19. The
required debt service millage rate must also be set at the same time as the general operating
millage.
After setting the proposed FY 2018/19 millage rate, the Commission may, at any time prior to the
final adoption, lower the rates by adjusting priorities. However, increasing the millage rate may
only be accomplished by an expensive mailing and advertising process to every property owner
on Miami Beach. The City's proposed operating millage rate as well as that of other taxing
authorities will be included in the Truth -in- Millage (TRIM) statement sent to each property owner
in the City.
MAXIMUM MILLAGE DETERMINATION
As presented at the May 24, 2018 Budget Workshop, and June 8, 2018 and July 13, 2018 FCWPC
budget briefings, the proposed FY 2018/19 operating millage rate, which includes a dedicated
millage for Pay -As- You -Go (PAYGO) capital funds and allows for growth over time with property
values equivalent to $2.4 million included in the FY 2018/19 proposed General Fund budget and
entirely offset by a decrease in the City's general millage, is 5.7288 mills. Based on the July 1,
2018 Certification of Taxable Value received from the Miami -Dade County Property Appraiser,
the levy of 5.7288 mills would generate approximately $182.2 million in General Fund property
tax revenues, which is an increase of $6.8 million over FY 2017/18 budgeted property tax
revenues Citywide (net of the City Center RDA).
Property Aesessrnent
Existing Values
New Construction
July 2017
Certified
36, 538,197,107
858, 865, 383
Total 37, 397, 062, 490
July 2018
Certified
38, 701, 545,195
186,115, 906
38, 887, 661,101
City Center RCA 5,702,556,459
Citywide Total. 31,694,506,031
Property Tax Revenue Projection
175 363 000
Property Tax Revenue Projection Variance
5, 993,199, 959
32, 894, 461,142
182,168, 000
6,805,000
Further; - pursuant to State Statute, the City may elect to approve millage rates above the "rolled -
back" rate up to the constitutional cap of 10 mills, subject to the following votes by the Commission
or referendum:
• Option I: A majority approval of the Commission is required to approve a millage up to
6.1024 mills (equivalent to a 1.47% increase in Property Tax revenues). The 1.0147
increase is the State per capita personal income gain for the prior calendar year.
Page 1064 of 1464
FY 2018/19 Proposed Millage Rate
July 25, 2018
Page 6
• Option II: A two - thirds approval (5 of 7 votes) of the Commission is required to approve a
millage up to 6.7126 mills (equivalent to a 10% increase in Property Tax revenues above
Option I).
• Option III: A unanimous approval of the Commission or referendum is required to approve
a millage above 6.7126 mills.
Adoption of the proposed FY 2018/19 total general operating millage rate of 5.7288 mills,
therefore, requires a majority approval (4 of 7 votes) by the City Commission per the State of
Florida's Truth -in- Millage (TRIM) requirements.
FIRST PUBLIC HEARING
The first public hearing on the proposed operating millage rate and budget for FY 2018/19 must
be held no later than 80 days, or earlier than 65 days, from the start of the TRIM calendar (July
1st). 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
hearing; 2) If on a day other than Saturday, it must be held after 5:00 P.M.; and, 3) must be held
immediately following discussion of the tentative millage and budget of its principal taxing
authority (City of Miami Beach).
Based on these guidelines, the first hearing must be held between September 3, 2018 and
September 18, 2018. These dates are unavailable for the following reasons:
September 9 and 16
September 3
September 5
September 6
Sundays
Labor Day
Miami -Dade County School Board Public Hearing
Miami -Dade County Public Hearing
Of the remaining days available, it is recommended that the first public hearing be set for
Wednesday, September 12, 2018 at 5:01 P.M., in the City Commission Chambers at 1700
Convention Center Drive, 3rd Floor, Miami Beach, Florida 33139, immediately following the City
of Miami Beach's public hearing.
JLM /JW /TOS
Page 1065 of 1464