Resolution 2019-31003 RESOLUTION NO., 2019-31003
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING: 1) THE
FINAL AD VALOREM MILLAGE OF 5.7288 MILLS FOR FISCAL
YEAR 2020 FOR GENERAL OPERATING PURPOSES, WHICH
IS THREE AND TWO TENTHS PERCENT (3.2%) MORE THAN
THE "ROLLED-BACK RATE OF 5.5522 MILLS; AND 2) THE
DEBT SERVICE MILLAGE RATE OF 0.2933 MILLS.
WHEREAS, on July 31, 2019, the Mayor and City Commission set the proposed Fiscal
Year 2020 general operating millage rate at 5.7288 mills (excluding debt service) for general
operating purposes,which is the same as the adopted Fiscal Year 2019 general operating millage
rate; and 0.2933 mills for debt service, which is an increase of 0.1333 mills from the adopted
Fiscal Year 2019 debt service millage rate, and which increase is necessary to fund the debt
service from the first tranche of General Obligation Bonds issued by the City in 2019 following the
voter referendum approval of the City's General Obligation Bond program on November 6, 2018;
and
WHEREAS,the proposed Fiscal Year 2020 general operating millage rate of 5.7288 mills
is comprised of a general millage rate of 5.6298 that funds operating costs in the General Fund,
a capital renewal and replacement millage rate of 0.0235 that provides a dedicated source of
funding for renewal and replacement projects that extend the useful life of General Fund capital
assets, and a capital Pay-As-You-Go millage rate of 0.0755 that provides a dedicated source of
funding for General Fund capital projects; and
WHEREAS, at the first public hearing on September 11, 2019, in accordance with Section
200:065, Florida Statutes, the Mayor and City Commission tentatively adopted the operating
millage rate of 5.7288 mills for general operating purposes, and 0.2933 mills for debt service, for
Fiscal Year 2020; and
WHEREAS, Section 200.065, Florida Statutes, requires that at the conclusion of the
second public hearing on the City's proposed tax rate and budget, the City Commission: 1)adopt
a final ad valorem millage rate for Fiscal Year 2020 general operating purposes; and 2)adopt the
required debt service millage rate for Fiscal Year 2020; this is accomplished by adopting a
Resolution which includes the percentage increase or decrease over the "rolled-back" rate.
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 Fiscal
Year 2020 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 three and two-tenths percent(3.2%) more than
the "Rolled-back" rate of 5.5522 mills.
(b) For the purpose of providing payment on the principal and interest
portions of outstanding General Obligation Bond Debt and miscellaneous
debt service expenditures, the rate assigned amounts to 0.2933 mills.
PASSED AND ADOPTED this 25th day of September, 2019.
ATTEST:
4r
0
o ../'���•an Gelber, Ma •
r'� / ,j C �`` 1�,,I
j* � ori. !! r�-
artRafael E. Granado, Cit Clerk ', INCORP•ORATED:
4'.�''•.. ��/ ; ,:?E APPROVED AS TO
°ARCH 2%0 f FORM&,� GUAGE
CLITION
Attorney Date
Resolutions - R7 A
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: September 25, 2019
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ADOPTING: 1) THE FINAL AD VALOREM
MILLAGE OF 5.7288 MILLS FOR FISCAL YEAR 2020 FOR GENERAL
OPERATING PURPOSES, WHICH IS THREE AND TWO TENTHS
PERCENT (3.2%) MORE THAN THE "ROLLED-BACK RATE OF 5.5522
MILLS;AND 2)THE DEBT SERVICE MILLAGE RATE OF 0.2933 MILLS.
RECOMMENDATION
See attached Memorandum.
Applicable Area
Citywide
Is this a Resident Right to Does this item utilize G.O.
Know item? Bond Funds?
Yes No
READING
5:01 p.m. Second Reading Public Hearing
Legislative Tracking
Office of Management and Budget
ATTACHMENTS:
Description
❑ 20 Second PH MEMO-GF Millage
❑ Resolution
Page 309 of 540
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
•
TO: Mayor Dan Gelber and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: September 25, 2019
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, ADOPTING: 1) THE FINAL AD VALOREM MILLAGE OF 5.7288
MILLS FOR FISCAL YEAR 2020 FOR GENERAL OPERATING PURPOSES,WHICH IS
THREE AND TWO TENTHS PERCENT (3.2%) MORE THAN THE "ROLLED-BACK
RATE OF 5.5522 MILLS; AND 2) THE DEBT SERVICE MILLAGE RATE OF 0.2933
MILLS
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) Final Millage Rates for Fiscal Year 2020:
General Millage 5.6298 mills
Capital Renewal & Replacement Millage 0.0235 mills
Pay-As-You-Go (PayGo) Millage 0.0755 mills
Total General Operating Millage 5.7288 mills (same as last year)
Voted Debt Service Millage 0.2933 mills (0.1333 increase over last year)
Total Combined Millage 6.0221 mills
2) The final adopted total combined millage rate of 6.0221 mills for Fiscal Year 2020 reflects an
increase of 0.1333 mills over the total combined millage rate of 5.8888 adopted for Fiscal
Year 2019. The final adopted total operating millage rate of 5.7288 for Fiscal Year 2020 is
0.1766 mills, or 3.2 percent, more than the"rolled-back"rate of 5.5522.As a result,the City is
required to publish a Notice of Proposed Tax Increase in accordance with the State of
Florida's Truth in Millage (TRIM) requirements.
The first public hearing on the tentative millage rates for Fiscal Year 2020 was held on September
11, 2019. The millage rates herein are those which were tentatively adopted at the first public
hearing on that day.
The"rolled-back"millage rate for Fiscal Year 2020 is the millage rate required to produce the same
level of property tax revenues in the General Fund in Fiscal Year 2020 as anticipated to be received
in Fiscal Year 2019. It is important to note that the overall January 1,2018 citywide tax roll declined
by almost $696.4 million between the July 1, 2018 certified valuation and the July 1, 2019 final
Page 310 of 540
Fiscal Year 2020 Final Millage Rates
September 25, 2019
Page 2
valuation due to appeals,adjustments, etc.,which is part of the reason the Fiscal Year 2020"rolled-
back" rate is 0.1766 mills, or 3.2 percent, lower than the Fiscal Year 2019 total 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 General Fund revenues directly, decreased in value by
approximately$501.1 million during the same period.
PROCEDURE
Florida Statutes, Section 200.065, requires that at the conclusion of the second public hearing on
the proposed tax rate and budget, the City Commission proceed in the following specific manner:
1. Adopt a final ad valorem millage rate for Fiscal Year 2020 general operating purposes.This
is accomplished by adopting a Resolution which includes the percentage increase or
decrease over the "rolled-back" rate; and the required debt service millage rate.
State statute requires that only the title be read aloud.
2. Adopt a final general operating budget for Fiscal Year 2020,which also includes budgets for
Enterprise, Internal Service, Special Revenue, G.O. Bond Debt Service Funds, as well as
the City Tax Increment Financing(TIF)portion of the City Center RDA.This is accomplished
by adopting a companion Resolution (see accompanying City Budget Agenda Item).
ANALYSIS OF PROPERTY VALUES IN MIAMI BEACH
On July 1, 2019, the City received the 2019 Certification of Taxable Value from the Miami-Dade
County Property Appraiser indicating that the overall taxable value for the City of Miami Beach was
$40.1 billion, including $302.5 million in new construction. Overall, this represented a 3.1 percent
increase in values from the 2018 Certification of Taxable Value provided by the Miami-Dade County
Property Appraiser on July 1, 2018.
July 2018 July 2019 $ 1 %
Certified j Certified [ Change Change ,
Property Assessment
--- - - -- -- ------- -- ---------------------- ------------------ ---- - - --- --- - ---- ------- --- —Existing Values 38,701,545,195 39,796,383,821 1,094,838,626 2.8%
New Construction 186,115,906 302,508,638 116,392,732 62.5%
Total Citywide 38,887,661,101 40,098,892,459 1,211,231,358 3.1%
City Center RDA -5,993,199,959 -6,258,372,786 -265,172,827 4.4%
Total Citywide-Net of City Center RDA 32,894,461,142 33,840,519,673 946,058,531 2.9%
Property Tax Revenue Projection 182,168,000 187,389,000 5,221,000 2.9%
Further, the following table shows the difference between the 2019 Certification of Taxable Value
from the Miami-Dade Property Appraiser as of July 1, 2019 and the 2019 Estimated Taxable Value
as of June 1, 2019 provided by the Miami-Dade County Property Appraiser.
Page 311 of 540
Fiscal Year 2020 Final Millage Rates
September 25, 2019
Page 3
--- — -�-June 2019 ;' July 2019 I $
Preliminary j; Certified Change l! Change
Property Assessment
Existing Values 39,800,000,000 39,796,383,821 -3,616,179 -0.01%
New Construction 235,000,000 302,508,638 67,508,638 28.7%
Total Citywide 40,035,000,000 40,098,892,459 63,892,459 0.2%
City Center RDA —6,292,859,957 -6,258,372,786 -34,487,171 -0.5%
Total Citywide-Net of City Center RDA 33,742,140,043 33,840,519,673 98,379,630 0.3%
Property Tax Revenue Projection 186,863,000 187,389,000 526,000 0.3%
Preliminary property tax revenue projections as of June 1,2019 assumed property values within the
City Center RDA would increase by approximately 5.0 percent over the 2018 Certification of
Taxable Value based on historical trends. However, based on the 2019 Certification of Taxable
Value provided by the Miami-Dade County Property Appraiser's Office as of July 1, 2019, property
values within the City Center RDA increased approximately 4.4 percent,thereby slightly increasing
citywide General Fund property tax revenues by a greater percentage than originally projected as of
June 1, 2019.
Lastly, citywide taxable values, excluding the City Center RDA district as of July 1,2019, increased
from $32.9 billion to $33.8 billion, which is an increase of approximately $946.1 million, or 2.9
percent, over the 2018 Certification of Taxable Value provided by the Miami-Dade Property
Appraiser.
January 1,201271; (in billions) January 1,2019 Value(in billions)
Jul 1 ' Revised ; — . --'I
July Change in / ! July 1,2019 i
2018 Value ! °
.i 2018 (FY2020 ;! %Chg.
(FY2019 (FY2019 !' Values ! Chg. Budget) li
Budget) ;i Projection) I. �; I. ,t
Chg.
Total Citywide 38.888 38.191 (0.696) -1.8% 40.099 1.211 3.1%
City Center RDA 5.993 5.798 (0.195) -3.3% 6.258 0.265 4.4%
Citywide-Net of City Center RDA 32.894 32.393 (0.501) -1.5% 33.841 0.946 2.9%
DETERMINING THE VOTED DEBT SERVICE MILLAGE LEVY
On November 6, 2018, the City of Miami Beach voters approved the issuance of a $439 million
G.O. Bond to fund a total of 57 capital projects citywide, ranging from vertical construction,
roadwork, park constructions and renovations, technology implementation, renewals and repairs,
and underground infrastructure work. The required Fiscal Year 2020 Voted Debt Service millage
rate would provide for funding of the first tranche of the$439 million G.O. Bond program through the
assessment, levy, and collection of ad-valorem tax on all property within the City and the full faith,
credit, and taxing power of the City pledged to the payment of the principal and interest on the
bonds issued as part of the voter-approved G.O. Bond Program.
For Fiscal Year 2020, the total required debt service payment is $11.8 million, which requires the
levy of a Voted Debt Service millage rate of 0.2933 mills.The Fiscal Year 2020 Voted Debt Service
millage rate is 0.1333 mills more than the Adopted Fiscal Year 2019 Voted Debt Service millage
rate of 0.1600 due to the new G.O. Bond Program. The required $11.8 million payment for Fiscal
Year 2020 is comprised of remaining debt service required for the City's outstanding 2011 G.O.
Bonds of$4.7 million, plus $7.1 million attributed to the new voter-approved G.O. Bond Program.
Page 312 of 540
Fiscal Year 2020 Final Millage Rates
September 25, 2019
Page 4
It is important to note that the required Fiscal Year 2020 Voted Debt Service millage rate is
reflective of approximately$621,000 in anticipated debt service savings resulting from refunding of
the City's 2003 G.O. Bonds during Fiscal Year 2019 that will be carried forward and utilized to fund
the required Fiscal Year 2020 debt service payment for the City's outstanding 2011 and 2019 G.O.
bonds.
IMPACT OF PROPOSED MILLAGE LEVY 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 percent 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 property values as of July 1, 2019, the median value of homesteaded property in Miami
Beach is $195,522 while the average is $500,407. The impact of the City's proposed Fiscal Year
2020 total combined millage rate of 6.0221 mills on the median homesteaded property within the
City would be an increase of $33 while the impact to the average value homesteaded property
within the City would be an increase of$106 as summarized in the table below.
Homesteaded Properties '
FY 2019 V FY 2020 —_
Median** Average** Median** P Average**
Preliminary Taxable Value** $194,251 $493,753 $195,522 $500,407
City of Miami Beach
Operating $ 1,113 $2,829 $ 1,120 $2,867
Voted Debt 31 79 57 147
Total Miami Beach $1,144 $2,908 $1,177 $3,014
$Change in Taxes
,Operating $38
Voted Debt 1111111 68
Total Miami Beach $33 $106
**Source: Miami-Dade County Property Appraiser's–2018 and 2019-Preliminary Average-Median-
Homestead-Residential-Values files
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). While the citywide average increase in property values is 3.1
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 can contribute to a property value increase of more than 10
percent.
Page 313 of 540
Fiscal Year 2020 Final Millage Rates
September 25, 2019
Page 5
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 68.9 percent of a Miami Beach property owner's tax bill.
The proposed Fiscal Year 2020 countywide tax rate for Miami-Dade County remained flat at 4.6669
mills; the library tax rate also remained flat at 0.2840 mills; and the debt service millage increased
by 0.0136 mills to 0.4780 mills.The tax rate for the Miami-Dade School District increased by 0.4150
mills to 7.1480 mills. The Children's Trust tax rate increased by 0.0265 mills to 0.4680 mills. As a
whole, the millage rates for the South Florida Water Management District, Okeechobee Basin,
Everglades Project, and Florida Inland Navigational District decreased by 0.0141 mills to 0.3115
mills.
With the proposed rates for Fiscal Year 2020, the Miami Beach portion of the tax bill is
approximately 31.1 percent of the total bill. Of note, the Fiscal Year2020 Countywide millage rate is
0.9571 mills less than the Countywide millage in Fiscal Year 2007, as compared to the City's Fiscal
Year 2020 millage rate that is 1.6509 mills less than the City's Fiscal Year 2007 millage. Further,
the School Board millage is 0.9570 mills below the Fiscal Year 2007 School Board millage of
8.1050 mills. The significant difference in the total overlapping millage rate is a direct result of the
City's continuing effort to keep millage rates as low as possible.A summary of the tax rate changes
is provided in the following table.
%of Variance Variance 1 %of
OVERLAPPINGMILEAGE TAX P FY 2007 R FY 2007 FY 2019 FY 2020 from from 1 FY 2020
E Total FY 2007 FY 2019 Total
- --- - - L-- - - ----- I - -- - - -
City of Miami Beach
Operating 7.1920 30.8% 5.6298 5.6298 (1.5622) 0.0000 29.1%
Renewal&Replacement 0.1820 0.8% 0.0235 0.0235 (0.1585) 0.0000 0.1%
Pay-As-You-Go Capital 0.0000 0.0% 0.0755 0.0755 0.0755 0.0000 0.4%
Operating Millage 7.3740 31.6% 5.7288 5.7288 (1.6452) 0.0000 29.6%
Voted Debt Service 0.2990 1.3% 0.1600 0.2933 (0.0057) 0.1333 1.5%
Subtotal 7.6730 32.9% 5.8888 6.0221 (1.6509) 0.1333 31.1%
Miami Dade County
Countywide 5.6150 24.1% 4.6669 4.6669 (0.9481) 0.0000 24.1%
Library 0.4860 2.1% 0.2840- 0.2840 (0.2020) 0.0000 1.5%
Debt Service 0.2850 1.2% 0.4644 0.4780 0.1930 0.0136 2.5%
Subtotal 6.3860 27.4% 5.4153 5.4289 (0.9571) 0.0136 28.0%
School Board 8.1050 34.8% 6.7330 7.1480 (0.9570) 0.4150 36.9%
Children's Trust 0.4220 1.8% 0.4415 0.4680 0.0460 0.0265 2.4%
Other 0.7360 3.2% 0.3256 0.3115 (0.4245) (0.0141) 1.6%
Total 23.3220 100.0% 18.8042 19.3785 (3.9435) 0.5743 100.0%
Page 314 of 540
Fiscal Year 2020 Final Millage Rates
September 25, 2019
Page 6
IMPACT OF COMBINED TAX RATES OF OVERLAPPING JURISDICTIONS ON
HOMESTEADED PROPERTIES
The City of Miami Beach's preliminary 2019 median and average homesteaded residential taxable
values are $195,522 and $500,407 respectively. Applying' the total combined millage rates
proposed for Fiscal Year 2020 to the median and average taxable values results in a property tax
increase of approximately$135 for the median and $413 for the average homesteaded residential
tax bill in the City of Miami Beach.
Median properties would pay approximately$3,788 for all taxing jurisdictions combined, while the
property taxes generated for average homesteaded residential properties would be approximately
$9,698 per homesteaded property. Of these taxing jurisdictions, the highest component is the
Miami-Dade School Board at$1,398 for a median valued homesteaded property and$3,577 for an
average valued homesteaded property.
The following table provides examples of changes in the property taxes levied for homesteaded
properties using the tax rates proposed for Fiscal Year 2020.
Impact on Homesteaded Properties _ - _--
- -- — -
FY 2019 II FY 2020
- - _ � Median" .11 Average** P Median' ! Average**
Preliminary Taxable Value** $194,251 $493,753 $195,522 $500,407
City of Miami Beach
Operating $ 1,113 $2,829 $ 1,120 $2,867
Voted Debt 31 79 57 147
Total Miami Beach $1,144 $2,908 $ 1,177 $3,014
Miami Dade County 1,052 2,674 1,061 2,717
Schools 1,308 3,324 1,398 3,577
Other 149 379 152 390
Total Combined $3,653 $9,285 $3,788 $9,698
Change in Taxes
City of Miami Beach
Operating $7 $38
Voted Debt 26 68
Total Miami Beach $33 $106
Miami Dade County 9 43
Schools 90 253
Other 3 11
Total Combined $ 135 $413
**Source: Miami-Dade County Property Appraiser's-2018 and 2019-Preliminary Average-Median-
Homestead-Residential-Values files
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 315 of 540
Fiscal Year 2020 Final Millage Rates
September 25, 2019
Page 7
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 Fiscal Year 2000 and Fiscal Year 2010, property tax rates
declined approximately 2.7857 mills. In Fiscal Year 2008 alone, the property tax rate declined by
approximately 1.7760 mills with annual savings to the average homesteaded property of over$400.
In addition, in Fiscal Year 2006 and Fiscal Year 2007, the City funded $200 and $300 homeowner
dividends paid to homesteaded property owners in the City.The City's total combined millage rates
for Fiscal Year 2017, Fiscal Year 2018, and Fiscal Year 2019 were the lowest it has been in the
City's recent history.
; Millage Rates I. Tax Levy(in millions) i
Ij i� '' General
ji
I Fund Total
1, I' l! I , (including
I �• Final/ II •i '1 S. Pointe,
I Taxable I. Revised i' Total 1,1 General ;I Total Tax li Capital
Property �i Taxable j, Combined Fund/RDA II Levy :, Renewal& '
Taxable ii Values Values Citywide I Operating including Repl.&
Values Chart i; (billions) j' (billions) !; Millage j. Millage !! Debt PayGo)
FY 1998 $ 6.46 $ 6.40 9.2100 7.4990 $ 57.45 $ 46.78
FY 1999 $ 6.97 $ 6.87 8.9830 7.4990 $ 60.37 $ 44.66
FY 2000 $ 7.66 $ 7.54 8.6980 7.4990 $ 64.29 $ 47.36
FY 2001 $ 8.37 $ 8.22 8.5550 7.3990 $ 69.08 $ 49.75
FY 2002 $ 9.40 $ 9.22 8.3760 7.2990 $ 75.97 $ 54.37
FY 2003 $ 10.56 $ 10.41 8.3220 7.2990 $ 84.81 $ 61.05
FY 2004 $ 12.09 $ 11.85 8.1730 7.2990 $ 95.39 $ 68.17
FY 2005 $ 14.04 $ 13.86 8.1730 7.4250 $ 110.74 $ 79.38
FY 2006 $ 17.45 $ 17.15 8.0730 7.4810 $ 135.91 $ 111.69
FY 2007 $ 22.74 $ 22.26 7.6730 7.3740 $ 168.38 $ 140.31
FY 2008 $ 26.85 $ 26.14 5.8970 5.6555 $ 150.42 $ 125.33
FY 2009 $ 26.90 $ 25.89 5.8930 5.6555 $ 150.59 $ 125.94
FY 2010 $ 24.70 $ 23.24 5.9123 5.6555 $ 138.70 $ 115.73
FY 2011 $ 22.10 $ 20.97 6.5025 6.2155 $ 136.55 $ 112.14
FY 2012 $ 21.98 $ 20.75 6.4539 6.1655 $ 134.75 $ 111.29
FY 2013 $ 23.07 $ 22.02 6.3477 6.0909 $ 139.10 $ 114.32
FY 2014 $ 24.66 $ 23.64 6.1163 5.8634 $ 143.26 $ 117.41
FY 2015 $ 27.10 $ 26.27 6.0237 5.7942 $ 155.10 $ 127.76
FY 2016 $ 30.70 $ 29.92 5.9123 5.7092 $ 172.42 $ 143.16
FY 2017 $ 34.70 $ 33.99 5.8888 5.7092 $ 194.11 $ 160.78
FY 2018 $ 37.39 $ 36.63 5.8888 5.7224 $ 209.21 $ 175.36
FY 2019 $ 38.88 $ 38.19 5.8888 5.7288 $ 217.51 $ 182.16
FY 2020 $. 40.10 6.0221 5.7288 $ 229.41 $ 187.39
*Data not available until next calendar year
Page 316 of 540
Fiscal Year 2020 Final Millage Rates
September 25, 2019
Page 8
Total Combined Millage Rates
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Fiscal Year
Property Values and Tax Levy
Today's General Fund operating budget also reflects greater diversification of revenues since Fiscal
Year 2007. The proposed Fiscal Year 2020 General Fund operating budget includes$36.8 million
in resort taxes to fund tourism-eligible expenditures (an increase of $921,000 from Fiscal Year
2019), a $4.4 million transfer from the City Center RDA in accordance with the 4th Amendment to
the Interlocal Agreement between Miami-Dade County and the City (an increase of$14,000 from
Fiscal Year 2019), and a$1.2 million transfer of Parking Operations Fund year-end surplus(same
as Fiscal Year 2019). In large part, due to these alternative revenue sources, property tax revenues
represent 53.6 percent of the total funding for the proposed Fiscal Year 2020 General Fund budget,
as compared to 59.1 percent in Fiscal Year 2007,which represents a significant reduction over the
last thirteen years.
Despite the proposed Fiscal Year 2020 General Fund operating budget increasing from $237.7
million in Fiscal Year 2007 to $350.0 million for Fiscal Year 2020, which is an increase of$112.4
million, or 47.3 percent, over the last thirteen years combined, the property tax levy has only
increased by$47.1 million, or 33.6 percent, over the same period.
Page 317 of 540
Fiscal Year 2020 Final Millage Rates
September 25, 2019
Page 9
340 45
320
300 40
280
260 . . . , 35 c
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FY FY FY FY FY FY FY FY FY FY FY FY FY FY
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Imm Property Values Tax Levy includng Debt
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, 2019),to advise the Miami-Dade County Property Appraiser of the proposed total
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 Fiscal Year 2020. The
required Voted Debt Service millage rate must also be set at the same time as the total general
operating millage rate.
After setting the proposed Fiscal Year 2020 millage rate, the Mayor and City 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 21, 2019 Commission Budget Workshop and Finance and Citywide
Projects Committee (FCWPC) Budget Briefings, the Fiscal Year 2020 total general operating
millage rate is proposed at 5.7288 mills, which reflects no change from the prior year Fiscal Year
2019 adopted total general operating millage rate. Based on the July 1, 2019 Certification of
Taxable Value received from the Miami-Dade County Property Appraiser, the levy of 5.7288 mills
would generate approximately $187.4 million in General Fund property tax revenues, which is an
increase of$5.2 million over Fiscal Year 2019 budgeted property tax revenues Citywide(net of the
City Center RDA).
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Fiscal Year 2020 Final Millage Rates
September 25, 2019
Page 10
July 2018 ' July 2019
Certified I; Certified
Property Assessment
Existing Values 38,701,545,195 39,796,383,821
New Construction 186,115,906 302,508,638
Total Citywide 38,887,661,101 40,098,892,459
City Center RDA (5,993,199,959) (6,258,372,786)
Citywide Total-Net of City Center RDA 32,894,461,142 33,840,519,673
Property Tax Revenue Projection 182,168,000 187,389,000
Property Tax Revenue Projection Variance 5,221,000
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 Mayor and City Commission is required to approve a
millage up to 6.1727 mills(equivalent to a 3.39 percent increase in Property Tax revenues).
The 1.0339 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 Mayor and City Commission is required
to approve a millage up to 6.7900 mills(equivalent to a 10 percent 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 6.7900 mills.
Adoption of the total general operating millaqe rate of 5.7288 mills proposed for Fiscal Year 2020.
would, therefore, require a majority approval (4 of 7 votes) by the Mayor and City Commission per
the State of Florida's Truth-in-Millage (TRIM) requirements.
CONCLUSION
The Administration recommends adoption of the attached Resolution, which sets both final total
general operating and voted debt service millage rates for Fiscal Year 2020 at 5/288 mills and
0.2933 mills, respectively.
JLM/JW/TOS
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