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Home My WebLink About2003-25311 Reso RESOLUTION NO. 2003-25311 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING: 1) THE TENTATIVE AD VALOREM MILLAGE OF 7.299 MILLS FOR GENERAL OPERATING PURPOSES, WHICH IS ELEVEN AND EIGHT TENTHS PERCENT (11.8%) GREATER THAN THE "'ROLLED-BACK"' RATE OF 6.527 MILLS; AND 2) THE DEBT SERVICE MILLAGE RATE OF 0.874 MILLS; FURTHER SETTING THE SECOND PUBLIC HEARING TO CONSIDER THE MILLAGE RATE FOR FISCAL YEAR 2003/04, ON THURSDAY, SEPTEMBER 18, 2003 AT 5:01 P. M. 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 Fiscal Year 2003/04 operating purposes; and 2) the required Debt Service millage rate; this is accomplished by adopting a Resolution that includes the percentage increase or decrease over the "rolled-back" rate; and WHEREAS, on July 30, 2003, the City Commission following a duly noticed public hearing, adopted Resolution No. 2003-25300, which set the proposed millage rates at 7.299 mills for general operating purposes, and 0.874 mills for debt service; and WHEREAS, at this time the Administration would recommend that the City Commission set the second and final public hearing to consider the aforestated millage rates for Fiscal Year 2003/04. 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 taxforthe Fiscal Year ( FY) 2003/04, 0 n a II taxable a nd 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 7.299 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 eleven and eight tenths percent (11.8%) greater than the "Rolled-back" rate of 6.527 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 0.874 mills. (2) The tentative adopted millage rates for the City of Miami Beach, Florida for FY 2003/04 are subject to a second and final public hearing, herein set for and to be held at 5:01 p.m., Thursday, September 18, 2003, in the City Commission Chambers, City Hall, 1700 Convention Center Drive, Miami Beach, Florida. PASSED and ADOPTED this 4th day of Se tern MAYOR ~~ CITY C~ERK~ APPROVED JlS TO FORM & LANGUAGE & FOR EXECUTION ff~l Date CITY OF MIAMI BEACH NOTICE OF A SPECIAL m CITY COMMISSION MEETING ~ NOTICE IS HEREBY given that a Special Commission Meeting will be held by thj;l City Commission of the City of Miami Beach, on Thursday, September 4, 2003, in the Commission Chambers, 3rd floor, City Hall, 1700 Convention Center Drive, Miami Beach, Florida, at the times listed below. at 5:01 p.m.: A PUBLIC HEARING ADOPTING THE PROPOSED MilLAGE RATE AND BUDGET FOR FISCAL YEAR 2003104 FOR THE CITY OF MIAMI BEACH. at 5:02 p.m.: A PUBLIC HEARING ADOPTING THE PROPOSED MilLAGE RATE AND BUDGET FOR FISCAL YEAR'2003lO4 FOR THE NORMANDY SHORES lOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT. In addition, the Ci~ Commission may discuss other City business at this meeting. Inquiries concerning this meeting shoul(.l be directed to the Office of Management and Budget at (305) 673-7510 I Robert E. Parcher, City Clerk I . City of Miami Beach Pursuant to Section 286.0105, Fla. Stat., the City hereby advises the public that: if a person decides to appeal any decision made by the City Commission with respect to any matter considered at its meeting or its hearing, such person must ensure that a verbatim record of the proceedings is made, which recorcl includes the testimony and evidence upon which the appeal is to be based. This notice does not constitute consent by the City for the introduction or admission of otherwise inadmissible or Irrelevant evidence, nor does It authorize challenges or appeals not otherwise allowed by law. In accordance with the Americans with Disabilities Act of 1990, persons needing special accommodation to participate in this proceeding, or to request information on access for persons with disabilities, or to request this publication in accessible format, or to request sign language M=' Interpreters, should contact the City Clerk's office at (305) 673.7411, no ~ later than four days prior to the proceeding. If hearing impaired, 11lW contact the City Clerk's office via the Florida Relay Service numbers, '''~; . (800) 955-8771 (TTY) or (800) 955-8770 (VOICE). Adtmi .., eft ;! I :< >>- i & .... l! I f I . . . . :r . .. . ... .. . ... . i I CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY m Condensed Title: A Resolution adopting: 1) the tentative ad valorem millage of 7.299 mills for general operating purposes which is eleven and eight tenths percent (11.8%) greater than the "Rolled-back" rate of 6.527 mills; 2) the debt service millage rate of 0.874 mills; and 3) setting Thursday, September 18, 2003, at 5:01 p.m., for the second public hearing to consider the millage rate for Fiscal Year 2003/04. Issue: Shall the Mayor and City Commission approve the tentative millage, the debt service millage and set the second public hearing for September 18, 2003? Item Summary/Recommendation: The Administration recommends adopting the resolution which sets the FY 2003/04 operating millage for general operating purposes, debt service millage, and sets the second public hearing for September 18, 2003. Advisory Board Recommendation: I Financial Information: Source of Amount Accollnt Approved Funds: 1 D 2 3 4 Finance Dept. Total City Clerk's Office Legislative Tracking: I Si n-Ofts: Department Director City Manager AGENDA ITEM DATE ~7AI 9-tf-tJ3 CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\ci.miami-beach.f1.us COMMISSION MEMORANDUM SUBJECT: Mayor David Dermer and DATE: September 4, 2003 Members of the City Commission Jorge M. Gonzalez ~.' ~ City Manager 0 r}/ ~ 0 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING: 1) THE TENTATIVE AD VALOREM MILLAGE OF 7.299 MILLS FOR GENERAL OPERATING PURPOSES, WHICH IS ELEVEN AND EIGHT TENTHS PERCENT (11.8%) GREATER THAN THE "ROLLED-BACK" RATE OF 6.527 MILLS; AND 2) THE DEBT SERVICE MILLAGE RATE OF 0.874 MILLS; FURTHER SETTING THE SECOND PUBLIC HEARING TO CONSIDER THE MILLAGE RATE FOR FISCAL YEAR 2003/04, ON THURSDAY, SEPTEMBER 18, 2003 AT 5:01 P. M. TO: FROM: ADMINISTRATION RECOMMENDATION The Administration recommends that the City Commission adopt the attached Resolution which sets the following: 1) Tentatively adopted millage rates for Fiscal Year (FY) 2003/04 General Operating Debt Service Total 7.299 mills (7.299 last year) 0.874 mills (1.023 last year) 8.173 mills (8.322 last year) 2) The tentatively adopted combined millage rate of 8.173 mills is 0.149 mills or 1.79% less than the 8.322 combined millage rate for FY 2002/03. While the tentatively adopted operating millage rate of 7.299 mills for FY 2003/04 is equal to the rate for FY 2002/03, state statute requires that we advertise that this rate is 11.8 % greater than the "Rolled-back" rate of 6.527 mills. 3) The second public hearing to consider the final millage rates and budgets for FY 2003/04 shall be on Thursday, September 18, 2003 at 5:01 P.M., in the City Commission Chambers, City Hall, 1700 Convention Center Drive. Tentative Operating and Debt Service Millages September 4, 2003 Page two PROCEDURE Florida Statutes 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 2003/04 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. State statute requires that only the title be read aloud. 2. Adopt a tentative general operating budget for FY 2003/04. Also included, are budgets for the Enterprise and Internal Service Funds. This is accomplished by adopting a companion Resolution. (See accompanying Agenda Item R7 A2). 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 7.299 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 of 7.299 mills established on July 30, 2003, and certified to the Property Appraiser, would require mailina of a revised notice of property taxes to each taxpayer. The notice would be prepared by the Property Appraiser, at the expense of the taxina authority. ANALYSIS OF PROPERTY VALUES IN MIAMI BEACH On July 1, 2003, the City received the "2003 Certification of Taxable Value" from the Miami-Dade County Property Appraiser. It stated that the preliminary gross taxable value of both real and personal property for the City of Miami Beach is $12,094,161,830, including $483,118,130 in new construction, which is the largest increase this City has experienced in its recent history. The preliminary 2003 value represents an increase of 16.5 percent over 2002's final value of$10,382,919,209. Alternately, the increase is 14.5 percent over 2002's preliminary value of$10,560,066,688. The difference of$177, 147,479 between 2002's preliminary and final values represents the equalization loss of less than 1.7 percent due to appeals, etc. The comparative assessed values for the Miami Beach Redevelopment Agency South Pointe redevelopment district increased by $386,913,776 or 42.0 percent from $920,742,376 to $1 ,307,656,152. The assessed values in the City Center redevelopment district increased $138,828,548 or 10.2 percent from $1,359,799,118 to $1,498,627,666. '. Tentative Operating and Debt Service Millages September 4, 2003 Page three DETERMINING THE OPERATING MILLAGE LEVY 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 each $1,000 of property value. For the City of Miami Beach, this value is determined by the 2003 Certification of Taxable Value and has been set at $12,094,161,830. 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 $11,670,866. The proposed millage rate of 7.299 mills will generate ad valorem tax revenues of $85,185,650 (of which $17,016,674 will be transferred to the Redevelopment Agencies) for a net revenue total of $68,168,976 in the General Fund. The total amount is $10,805,446 more than the prior year levy of $74,380,204, reflecting a 14.5 percent increase. The net General Fund ad valorem budget has increased $7,118,062 (11.7%) from $61 ,050,914 to $68,168,976. DETERMINING THE DEBT SERVICE MILLAGE LEVY The debt service payment for FY 2003/04 is $10,200,337 and requires a tax rate of 0.874 mills. This rate is 0.149 mills, or fourteen and six tenths percent (14.6%) less than the FY 2002/03 rate of 1.023 mills. This rate includes the debt service of $62,465,000 of General Obligation Bonds which were sold and closed during July 2003. These bonds represent the final issue of the $92,465,000 of bonds authorized by the voters in November 1999, completing this authorization. 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 2002/03 (final) and FY 2003/04 (preliminary). Tax Rate Tax Levy FY 02103 FY 03/04 Inc/(Dec) FY 02/03 FY 03/04 Inc!(Dec) Genera] Operating 7.299 7.299 (0.000) $73,132,455 $85,185,650 $12,053,]95 Debt Service 1.023 0.874 (0.149) 10.249.966 10.200.337 (49.629) TOTAL 8.322 8.173 (0,149) $83,382,42] $95,385,987 $12,003,566 If these recommended tax rates are tentatively adopted, then the combined tax rate will decrease by 0.149 mills, or 1.79 percent less than the current year. The operating millage will remain constant, and debt service millage will decrease by 0.149 mills, or 14.6 percent. '. Tentative Operating and Debt Service Millages September 4, 2003 Page four 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 02/03, the Miami Beach portion ofthe total tax bill was 33.2 percent. The proposed millage rates for FY 2003/04 will place the Miami Beach portion of the tax bill to 32.99 percent based on tax rates announced by other jurisdictions. Revised FY 2003/04 tax rates may be considered by Miami-Dade County on September 3, 2003. The countywide tax rate will increase to 5.994 mills; the County's debt service will decrease to 0.285 mills. The Library District has announced that the millage will remain at 0.486 mills. While it is not possible to determine the exact amount returned in additional services. it should be noted that Miami-Dade County returned $10.788.150 durinQ FY 2002/03 in tax-increment funds for the Redevelopment AQency and its two tax-increment districts. The Miami-Dade County School Board is scheduled to discuss its final tax rate on September 10, 2003, but has tentatively announced a rate of 9.100 mills; a decrease of 0.152 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. Illustrated below are the current and proposed tax rates for the multiple taxing authorities. Adopted Proposed % %of Taxing Jurisdiction FY 02/03 FY 03/04 Inc/(Dec) Change Total Miami Beach 32.99 General Operating 7.299 7.299 0.000 0.00 Debt Service 1.023 0.874 (0.149) (14.57) Miami-Dade County 27.31 Countywide Operating 5.889 5.964 0.105 1.78 Library 0.486 0.486 0.000 0.00 Debt Service 0.390 0.285 (0.105) (26.92) School Board 9.252 9.100 (0.152) (1.64) 36.73 Other 0.736 0.736 0.000 0.00 2.97 Totals 25.075 24.774 (0.30 I) (1.20) 100.00 '. Tentative Operating and Debt Service Millages September 4, 2003 Page five 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 2003, the CPI has been determined to be 2.4 percentand therefore, the increase is capped at 2.4 % for increased values as of January 1, 2003. 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 2.4 % percent to a new value of $204,800. The homestead exemption of $25,000 is then deducted, yielding a taxable value of $179,800. Using the proposed tax rates, that value is then taxed as follows: Taxing Proposed Jurisdiction Millaae @ 7.299 0.874 8.173 Miami Beach Miami-Dade County School Board Other $13.15 32.46 17.08 3.52 Totals $ 66.21 At the combined proposed millage rate of 8.173, 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 8.322 millage rate, would increase by $13.15. The overall taxes would increase by $66.21. This, of course, assumes that the other taxing jurisdictions adopt these millages. SECOND PUBLIC HEARING The second public hearing on the tentatively adopted millage rate and budget for FY 2003/04 must be advertised no later than 1 5 days after t he first public hearing. It is recommended that the second public hearing be set for Thursday, September 18,2003 at 5:01 P.M., 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 2003/04 and establishes a second public hearing to be held on Thursday, September 18, 2003, at 5:01 P. M. J~