Resolution 2018-30497 RESOLUTION NO. 2018-30497
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING: 1) THE
TENTATIVE AD VALOREM MILLAGE OF 5.7288 MILLS FOR
FISCAL YEAR (FY) 2018/19 FOR GENERAL OPERATING
PURPOSES, WHICH IS FOUR AND SEVEN TENTHS PERCENT
(4.7%) MORE THAN THE "ROLLED-BACK" RATE OF 5.4727
MILLS; AND 2) THE DEBT SERVICE MILLAGE RATE OF 0.1600
MILLS, SUBJECT TO A SECOND PUBLIC HEARING TO
CONSIDER THE MILLAGE RATE FOR FISCAL YEAR 2018/19
ON WEDNESDAY, SEPTEMBER 26, 2018, AT 5:01 P.M.
WHEREAS, on July 25, 2018, the City Commission set the proposed general operating
millage rate at 5.7288 mills (excluding debt service) for general operating purposes, which is an
increase of 0.0064 mills from the FY 2017/18 general operating millage rate; and 0.1600 mills for
debt service, which is a reduction of 0.0064 mills from the FY 2017/18 debt service millage rate;
and
WHEREAS, the proposed general operating millage rate of 5.7288 is comprised of a
general millage rate of 5.6298, a capital renewal and replacement millage rate of 0.0235, and a
newly dedicated capital Pay-As-You-Go millage rate of 0.0755; and
WHEREAS, Section 200.065, Florida Statutes, requires that at the conclusion of the first
public hearing on the City's proposed tax rate and budget, the City Commission: 1) adopt a
tentative ad valorem millage rate for FY 2018/19 general operating purposes; and 2) adopt the
required debt service millage rate; this is accomplished by adopting a Resolution which includes
the percentage increase or decrease over the "rolled-back" rate; and
WHEREAS, at this time, the Administration recommends that the City Commission set the
second and final public hearing to consider the aforementioned millage rates for FY 2018/19.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, as follows:
(1) Pursuant to Section 200.065, Florida Statutes, there is hereby levied a tax for FY
2018/19, 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 5.7288 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 four and seven-tenths percent (4.7%) more
than the "Rolled-back" rate of 5.4727 mills.
(b) For the purpose of providing payment on the principal and interest
portions of the General Obligation Bond Debt outstanding and
miscellaneous debt service expenditures, the rate assigned amounts to
0.1600 mills.
(2)The tentative adopted millage rates for the City of Miami Beach, Florida for FY 2018/19
are subject to a second and final public hearing, herein set for and to be held at 5:01 p.m.,
Wednesday, September 26, 2018, in the City Commission Chambers, City Hall, 1700 Convention
Center Drive, 3r0 Floor, Miami Beach, Florida 33139.
PASSED AND ADOPTED this 12th day of September, 2018.
al9/________
Dan Gelber, Mayor
ATTEST:
R. ael E. Granado, City Clerk „N\ B E � , APPROVED AS TO
P .,,, 0 ,� FORM & LANGUAGE
& FOR EXECUTION
• _ ' * dal CI,A— F 5���6
`:INOORP ORATED City Attorney I / Dote
Resolutions - R7 G
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: September 12, 2018
5:01 p.m. First Reading Public Hearing
SUBJECT A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ADOPTING: 1) THE TENTATIVE AD VALOREM
MILLAGE OF 5.7288 MILLS FOR FISCAL YEAR (FY) 2018/19 FOR GENERAL
OPERATING PURPOSES, WHICH IS FOUR AND SEVEN TENTHS PERCENT
(4.7%) MORE THAN THE "ROLLED-BACK" RATE OF 5.4727 MILLS; AND 2) THE
DEBT SERVICE MILLAGE RATE OF 0.1600 MILLS, SUBJECT TO A SECOND
PUBLIC HEARING TO CONSIDER THE MILLAGE RATE FOR FISCAL YEAR
2018/19, ON WEDNESDAY, SEPTEMBER 26, 2018 AT 5:01 RM.
RECOMMENDATION
See attached Memorandum.
Legislative Tracking
Budget and Performance Improvement
ATTACHMENTS:
Description
o 19 First PH MEMO-GF Millage
Page 1124 of 1802
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miomibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Dan Gelber and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: September 12, 2018
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, ADOPTING: 1) THE TENTATIVE AD VALOREM MILLAGE OF
5.7288 MILLS FOR FISCAL YEAR (FY) 2018/19 FOR GENERAL OPERATING
PURPOSES, WHICH IS FOUR AND SEVEN TENTHS PERCENT(4.7%) MORE THAN
THE "ROLLED-BACK" RATE OF 5.4727 MILLS; AND 2) THE DEBT SERVICE
MILLAGE RATE OF 0.1600 MILLS, SUBJECT TO A SECOND PUBLIC HEARING TO
CONSIDER THE MILLAGE RATE FOR FISCAL YEAR 2018119, ON WEDNESDAY,
SEPTEMBER 26, 2018 AT 5:01 P.M.
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 5.6298 mills (0.0691 less than last year)
Capital Renewal & Replacement Millage 0.0235 mills (same as last year)
Pay-As-You-Go (PAYGO) Millage 0.0755 mills (new in FY 2018/19)
Total General Operating Millage 5.7288 mills (0.0064 more than last year)
Voted Debt Service Millage 0.1600 mills (0.0064 less than last year)
Total Combined Millage 5.8888 mills (same as last year)
2) The tentatively adopted combined millage rate of 5.8888 mills is the same as the combined
millage rate for FY 2017/18. The tentatively adopted operating millage rate of 5.7288 for
FY2018/19 is 0.2561 mills, or 4.7% more than the "rolled-back" rate of 5.4727. As a result,
the City is required to publish a Notice of Tax Increase.
3) The second public hearing to consider the final millage rates and budgets for FY 2018/19
shall be held on Wednesday, September 26, 2018 at 5:01 P.M., in the City Commission
Chambers, City Hall, 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
Page 1125 of 1802
FY 2018/19 Proposed Miliege
September 12, 2018
Page 2
appeals, adjustments,etc., which is part of the reason the FY 2018/19"rolled-back" millage rate is
0.2561 mills, or 4.7% 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
by higher property values.
The area outside of the City Center Redevelopment Area (RDA), which impacts the General Fund
revenues directly, decreased in values by approximately $525.2 million between the July 1, 2017
certified valuation and the July 1, 2018 final valuation.
PROCEDURE
Florida Statutes, Section 200.065, requires that at the conclusion of the first public hearing on the
proposed tax rate and budget, the City Commission proceed in the following specific manner:
1. Adopt a tentative ad valorem millage rate for FY 2018/19 general operating purposes.This
is accomplished by adopting a Resolution which 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
State statute requires that only the title be read aloud.
2. Adopt a tentative general operating budget for FY 2018/19. Also included are budgets for
the Enterprise, Internal Service, Special Revenue,G.O. Bond Debt Service and City Center
RDA Funds. This is accomplished by adopting a companion Resolution. (See
accompanying City Budget Agenda Item).
Both the millage and budget Resolutions must be adopted again after a second and final public
hearing.
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 53% of total General Fund revenues.
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 Revised Value July 1,2010
(FY2017118 (FY2017118 Change in Chg. (FY2018119 $Change Chg.
Budget) Projection) 2017 Values Budget) (�^billions)
Total Citywide $ 37.397 $ 36.639 S (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%
Page 1126 of 1802
FY 2018/19 Proposed Millage
September 12, 2018
Page 3
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 from the FY 2017/18 voted
debt service levy of 0.1664 mills. This difference is proposed to be applied to the general operating
millage rate.
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 homesteaded 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 Pmperlin
FY 2017/18 FY 2018/19
Median" Average" Median Average
Preliminary Taxable Value" § 182,343 $ 483,617 $ 186,172 $ 473,353
City of Miami Beach
Operating $ 1,043 $ 2,653 $ 1,067 $ 2712
Voted Debt 30 77 30 76
Tobi Miami Beach § 1,073 $ 2,730 $ 1,097 $ 2,788
$Change in Taxes
Operating § 24 § 59
Voted Debt - (1)
Total Miami Beach $ 24 $ 58
'Source:MiamFDade County Property Appraisers-2017-average-median-homestead-residential-
values fie
Impact on Non-Homesteaded Properties
The annual increase in market value of a non-homesteaded property is capped at 10 percent(does
not apply to school millage rates). The city-wide average increase in property values is 4.0 percent.
The property value of individual properties may increase up to, but not more than 10 percent
(excluding the school millage portion of the property tax bill). However,an individual property owner
may see a higher than 10 percent increase if there is a change in ownership of a capped property
resulting in a reset of the cap. Another potential factor, if applicable, would be the value of new
construction which could contribute to a property value increase of higher than 10 percent.
Page 1127 of 1802
FY 2018/19 Proposed Millage
September 12, 2018
Page 4
OVERLAPPING JURISDICTIONAL OPERATING AND DEBT SERVICE MILLAGE RATES
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 69 percent of a Miami Beach property owner's tax bill.
The countywide tax rate for Miami-Dade County remained flat at 4.6669; the library tax rate also
remained flat; and the debt service millage increased by 0.0644 mills. The tax rate for the Miami-
Dade School District decreased from 6.9940 to 6.7330 mills. The Children's Trust millage rate
decreased from 0.4673 to 0.4415 mills. As a whole, the millage rates for the South Florida Water
Management District, Okeechobee Basin, Everglades Project, and Florida Inland Navigational
District decreased from 0.3420 mills to 0.3256 mills.
With the Proposed rates for FY 2018/19,the Miami Beach portion of the tax bill is approximately 31
percent of the total bill. Of note, the County millage rate is 0.9707 mills less than the County millage
in FY 2006/07, as compared to the City's millage rate, which is 1.7842 mills less than the City
millage in FY 2006/07. Further, the School Board millage is 1.3720 below the FY 2006/07 millage
rate. 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.
Variance Variance Yo of
OVERLAPPING TAX MILLAGE FY 2006/07 FY 2017/18 FY 2018/19 from from FY 2018/19
FY 2017/16 FY 2006/07 Total
City of Miami Beach
Operating 7.1920 5.6989 ` 5.6298. -0.0691 -1.5622
Capital Renewal 8 Replacement 0.1820 0.0235 0.0235 0.0000 -0.1585
Pay-As-You-Go Capital 0.0000 0.0000 0.0755 0.0755 0.0755
subtotal Operating Millage 7.3740 5.7224 5.7288 0.0064 -1.6452
Voted Debt Service 0.2990 0.1664 `.. 0.1600 -0.0064 -0.1390
Total 7.6730 5.8888 5.8888 0.0000 -1.7842 31%
Miami Dade County
Countywide 5.6150 4.6669 ;( 4.6669 0.0000 -0.9481
Library 0.4860 0.2840 0.2840 0.0000 -0.2020
Debt Service 0.2850 0.4000 '. 0.4644 0.0644 0.1794
subtotal 6.3860 5.3509 5.4153 0.0644 -0.9707 29%
School Board 8.1050 6.9940 8.7330 -0.2610 -1.3720 36%
Children's Trust 0.4220 0.4673 0.4415 -0.0258 0.0195 2%
Other 0.7360 0.3420 0.3256 -0.0164 -0.4104 2%
Total 23.3220 19.0430 18.8042 -0.2388 -4.5178 100%
Page 1128 of 1802
FY 2018/19 Proposed Miliege
September 12, 2018
Page 5
IMPACT OF COMBINED TAX RATES OF OVERLAPPING JURISDICTIONS ON
HOMESTEADED PROPERTIES
The City of Miami Beach's 2018 preliminary median and average homesteaded residential taxable
values are$186,172 and $473,353 respectively. Applying the Proposed combined millage rates to
the median and average taxable values results in a property tax increase of approximately$29 for
the median and $72 for the average homesteaded residential tax bill.
Median properties would pay approximately $3,501 for all taxing jurisdictions combined, while the
average taxes generated would be approximately $8,901 per homesteaded property. Of these
taxing jurisdictions,the highest component is the Miami-Dade School Board,at$1,253 for a median
value homesteaded property, and $3,187 for an average valued homesteaded property.
The following table provides examples of changes in property taxes for homesteaded properties
using the Proposed tax rates and potential changes from 2017 values.
Impact on Homesteaded Properties
FY 2017118 FY 2018)19
Median" Average" Median Average
Preliminary Taxable Value' $ 182,343 $ 463,617 $ 186,172 $ 473,353
City of Miami Beach
Operating $ 1043 $ 2653 $ 1,067 $ 2712
Voted Debt 30 77 30 76
Total Miami Beach $ 1,073 $ 2730 $ 1,097 $ 2788
Miami Dade County 976 2481 1,008 2563
Schools 1,275 3243 1,253 3,187
Other 148 375 143 363
Total $ 3472 $ 8,829 $ 3501 $ 8,901
Change in Taxes
City of Miami Beach
Operating $ 24 $ 59
Voted Debt 0 (1)
Total Miami Beach $ 24 $ 58
Miami Dade County 32 82
Schools (22) (56)
Other 15) (12)
Total $ 29 $ 72
"Source:Miami-Dade County Property Appraisers Once:2017 Preliminary Average and Median
Homestead Residential Values Report
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.
Page 1129 of 1802
FY 2018/19 Proposed Millage
September 12, 2018
Page 6
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 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. Further, the proposed City of Miami Beach total
combined millage rate for FY 2018/19 of 5.8888 is the lowest it has been in at least 50 years and is
equivalent to the total combined millage rate adopted in FY 2017/18.
Millage Rates Tax Leet'(in millions)
General
Fund Total
Taxable FinaVRevised Total Total Tax (inducting s.
Pointe,and
Property Taxable Combined Gneral Levy Renewal&
Taxable Values Values Citywide Fund/RDA including Replacement
Values Chart (billions) (billions) Millage Millage Debt &CRR)
FY1997/98 $ 6.46 $ 6.40 9.2100 7.4990 $ 57.45 $ 46.78
FY1998/99 $ 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 $ 922 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 72990 $ 95.39 $ 68.17
FY2004/05 $ 14.04 $ 13.86 8.1730 7.4250 $ 110.74 $ 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
FY2010/11 $ 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 $ 26.27 6.0237 5.7942 $ 155.10 $ 127.76
FY2015/16 $ 30.70 $ 29.92 5.9123 5.7092 $ 172.42 $ 143.16
FY2016/17 $ 34.70 $ 33.99 5.8888 5.7092 $ 194.11 $ 160.78
FY2017/18 $ 37.39 $ 36.63 5.8888 5.7224 $ 209.21 $ 175.36
FY2018/19 $ 38.88 5.8888 5.7288 $ 217.51 $ 182.16
'Data not available until next calendar year
Page 1130 of 1802
FY 2018/19 Proposed Millage
September 12, 2018
Page 7
Total Combined Millage Rates
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Property Values and Tax Levy
Today's General Fund Operating Budget also reflects greater diversification of revenues since FY
2006/07. The Proposed Work Plan and Budget includes $35.8 million in resort taxes to fund
tourism-eligible expenditures(increased by$886,000 from last year)and a$1.2 million transfer of
Parking Operations Fund year-end surplus (reduced $3.2 million from last year). In large part due
to these alternative sources, property tax revenues represent 53 percent of the total funding for the
FY 2018/19 General Fund budget, as compared to 59 percent in FY 2006/07, which represents a
significant reduction over the past several years.
Despite the General Fund budget increasing from$237.7 million in FY 2006/07 to$345.1 million in
FY 2018/19, a 45% increase, the property tax levy has only increased by $49.1 million, or 29%
between FY 2006/07 and FY 2018/19.
Page 1131 of 1802
FY 2018/19 Proposed Millage
September 12, 2018
Page 8
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STATUTORY REQUIREMENTS
Florida Statute, Section 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 Budget Briefings, the proposed FY
2018/19 general operating millage rate,which includes a newly 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).
Page 1132 of 1802
FY 2018/19 Proposed Mi/lege
September 12, 2018
Page 9
July 2017 July 2018
Certified Certified
Property Assessment
Existing Values 36,538,197,107 38,701,545,195
New Construction 858,fij . 186,115,906
Total 37,397,062,490 38,887,661,101
City Center RDA 5,702,556,459 5,993,199,959
Citywide Total 31,694,506,031 32,894,461,142
Property Tax Revenue Projection 175,363,000 182,168,000
Property Tax Revenue Projection Variance 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 City
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.
• 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 millaqe 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.
SECOND PUBLIC HEARING
The second public hearing on the tentatively adopted millage rate and budget for FY 2018/19 must
be advertised no later than 15 days after the first public hearing. It is recommended that the second
public hearing be set for Wednesday, September 26, 2018, at 5:01 P.M., in the City Commission
Chambers, City Ha11,1700 Convention Center Drive, 3'd Floor, Miami Beach, Florida 33139.
CONCLUSION
The Administration recommends adoption of the attached Resolution which sets both tentative
operating and debt service millage rates for FY 2018/19 at 5.7288 mills and 0.1600 mills
respectively and establishes a second public hearing to be held on Wednesday, September 26,
2018,at 5:01 P.M., in the City Commission Chambers, City Hall, 1700 Convention Center Drive, 3'd
Floor, Miami Beach, Florida 33139.
JLM/JW/TOS
Page 1133 of 1802