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Resolution 2020-31427 RESOLUTION NO. 2020-31427 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 2021 FOR GENERAL OPERATING PURPOSES, WHICH IS TWO AND EIGHT TENTHS PERCENT (2.8%) MORE THAN THE "ROLLED-BACK RATE OF 5.5726 MILLS; AND 2) THE DEBT SERVICE MILLAGE RATE OF 0.3227 MILLS. WHEREAS, on July 29, 2020, the Mayor and City Commission adopted Resolution 2020- 31357, which set the proposed Fiscal Year (FY) 2021 general operating millage rate at 5.7288 mills (excluding debt service)for general operating purposes and is the same as the adopted FY 2020 general operating millage rate, and 0.3227 mills for debt service, which is an increase of 0.0294 mills from the adopted FY 2020 debt service millage rate and is necessary to fund the required 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 FY 2021 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(CRR)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 (PayGo) millage rate of 0.0755 that provides a dedicated source of funding for General Fund capital projects; and WHEREAS, for FY 2021, it is proposed that based on the recommendations made at the June 16, 2020 and July 17, 2020 Finance and Economic Resiliency Committee (FERC) Budget Briefings, in order to recognize the savings from the deferral of capital projects during FY 2020 due to the impact of COVID-19, only the difference between the amounts that were deferred and the amounts budgeted to be collected in FY 2020 ($208,000 and $29,000) be transferred to the PayGo and CRR funds, respectively, for FY 2021, as well as the incremental increases ($44,000 and $14,000) based on the July 1, 2020 Certification of Taxable Value from the Miami-Dade County Property Appraiser and proposed millage rates, with the remaining balance proposed to be transferred to the City's General Fund reserves in accordance with the budget balancing plan that was presented to the FERC on April 17,2020; and WHEREAS, on August 7, 2020, Governor DeSantis signed Executive Order 20-193, extending Executive Order 20-69, which suspended any Florida Statute that requires a quorum to be present in person or requires a local government body to meet at a specific public place and authorized local government bodies to utilize communications media technology, such as telephonic and video conferencing, as provided in section 120.54(5)(b)2., Florida Statutes, until 12:01 a.m. on October 1, 2020; and WHEREAS, at the first public hearing on September 16, 2020, 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 0.3227 mills for debt service, for FY 2021; 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 2021 general operating purposes; and 2) adopt the required debt service millage rate for FY 2021; this is accomplished by adopting a Resolution which includes the percentage increase or decrease over the "rolled-back" rate; and 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 2021 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 two and eight-tenths percent(2.8%)more than the "Rolled-back" rate of 5.5726 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 0.3227 mills. PASSED AND ADOPTED this 29th day of September 2020. ATTEST: 42_,(17-(1 Dan Gelber, Mayor d . Rafael E. Granado, C y Clerk iINEORPtORATED APPROVED AS TO h�•.. �1C.!i rte_ '--,-v••...`3�,,.:• �= FORM &LANGUAGE ,25 --- &FOR EXECUTION (( / r Ja 2-0 City Attorney m_e 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 29, 2020 5:01 p.m. Second Reading Public Hearing 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 2021 FOR GENERAL OPERATING PURPOSES, WHICH IS TWO AND EIGHT TENTHS PERCENT (2.8%) MORE THAN THE "ROLLED-BACK" RATE OF 5.5726 MILLS;AND 2)THE DEBT SERVICE MILLAGE RATE OF 0.3227 MILLS. RECOMMENDATION See attached Memorandum. Applicable Area Citywide Is this a"Residents Right Does this item utilize G.O. to Know" item, pursuant to Bond Funds? • City Code Section 2-14? Yes No Strategic Connection Organizational Innovation- Ensure strong fiscal stewardship. Legislative Tracking Office of Management and Budget ATTACHMENTS: Description D Memo- Citywide Millage ❑ Resolution ❑ Ad Page 10 of 281 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 29, 2020 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 2021 FOR GENERAL OPERATING PURPOSES,WHICH IS TWO AND EIGHT TENTHS PERCENT (2.8%) MORE THAN THE "ROLLED-BACK" RATE OF 5.5726 MILLS; AND 2) THE DEBT SERVICE MILLAGE RATE OF 0.3227 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(FY) 2021: 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 0.3227 mills (0.0294 increase over last year) Total Combined Millage 6.0515 mills 2) The final adopted total combined millage rate of 6.0515 mills for FY 2021 reflects an increase of 0.0294 mills over the total combined millage rate of 6.0221 adopted for FY 2020. The final adopted total operating millage rate of 5.7288 for FY 2021 is 0.1562 mills, or 2.8 percent(%), more than the"rolled-back" rate of 5.5726.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 FY 2021 was held on September 16,2020. The millage rates herein are those which were tentatively adopted at the first public hearing on that day. The"rolled-back"millage rate for FY 2021 is the millage rate required to produce the same level of property tax revenues in the General Fund in FY 2021 as anticipated to be received in FY 2020. It is important to note that the overall January 1,2019 citywide tax roll declined by almost$788.4 million between the July 1, 2019 certified valuation and the July 1, 2020 final valuation due to appeals, Page 11 of 281 FY 2021 Final Millage Rates September 29, 2020 Page 2 adjustments, etc., which is part of the reason the FY 2021 "rolled-back" rate is 0.1562 mills, or 2.8%, lower than the FY 2020 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 $546.1 million during the same period. 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 final ad valorem millage rate for FY 2021 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. State statute requires that only the title be read aloud. 2. Adopt a final general operating budget for FY 2021, 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, 2020, the City received the 2020 Certification of Taxable Value from the Miami-Dade County Property Appraiser indicating that the overall taxable value for the City of Miami Beach was $41.7 billion,including$1.3 billion in new construction.Overall,this represented a 4.1%increase in values from the 2019 Certification of Taxable Value provided by the Miami-Dade County Property Appraiser on July 1, 2019. July 2019 July 2020 $ Certified Certified Change Property Assessment Property Values 40,098,892,459 41,742,998,986 1,644,106,527 City Center RDA _ _ __ _ 6,258,372,786 6,204,385,940 (53,986,846) Citywide Total-Net of City Center RDA 33,840,519,673 35,538,613,046 1,698,093,373 Property Tax Revenue Projection 187,389,000 196,617,000 9,228,000 Further,the following table shows the difference between the 2020 Certification of Taxable Value from the Miami-Dade Property Appraiser as of July 1,2020 and the 2020 Estimated Taxable Value as of June 1, 2020 provided by the Miami-Dade County Property Appraiser. Page 12 of 281 FY 2021 Final Millage Rates September 29, 2020 Page 3 June 2020 July 2020 $ Preliminary Certified Change Property Assessment Property Values 41,485,000,000 41,742,998,986 257,998,986 City Center RDA _ 6,571,291,425 __6,204,385,940 (366,905,485) Citywide Total- Net of City Center RDA — 34,913,708,575 35,538,613,046 624,904,471 Property Tax Revenue Projection 193,315,000 196,617,000 3,302,000 Preliminary property tax revenue projections as of June 1,2020 assumed property values within the City Center RDA would increase by approximately 5.0% over the 2019 Certification of Taxable Value based on historical trends. However, based on the 2020 Certification of Taxable Value provided by the Miami-Dade County Property Appraiser's Office as of July 1,2020, property values within the City Center RDA decreased 0.9%,thereby increasing citywide General Fund property tax revenues by a greater percentage than originally projected as of June 1, 2020. Lastly,citywide taxable values,excluding the City Center RDA district as of July 1,2020, increased from $33.8 billion to$35.5 billion, which is an increase of approximately$1.7 billion, or 5.0%, over the 2019 Certification of Taxable Value provided by the Miami-Dade Property Appraiser. January 1,2019 Value(in billions) January 1,2020 Value(in billions) July 1, Revised Change in ° July 1, $Change 2019 Value2020 (FY2020 (FY2020 2019 Chg. (Y 021 (in %Chg. Budget) Proj.) Values Budget) billions) . Total Citywide 40.099 . 39.311 (0.788) -2.0% 41.743 1.644 4.1% City Center RDA 6.258 6.016 (0.242) -3.9% 6.204 (0.054) -0.9% Citywide.-Net of City Center RDA 33.841 33.294 (0.546) -1.6% 35.539 1.698 5.0% 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 FY 2021 Voted Debt Service millage rate provides for the funding of the first tranche, totaling $153 million, 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 FY 2021, the total required debt service payment is$12.8 million,which requires the levy of a Voted Debt Service millage rate of 0.3227 mills.The FY 2021 Voted Debt Service millage rate is 0.0294 mills more than the Adopted FY 2020 Voted Debt Service millage rate of 0.2933. The required$12.8 million payment for FY 2021 is comprised of remaining debt service required for the City's outstanding 2011 G.O. Bonds of$2.3 million, plus$10.5 million attributed to the G.O. Bond Program that was approved by the voters in 2018. Page 13 of 281 FY 2021 Final Millage Rates September 29, 2020 Page 4 IMPACT OF PROPOSED MILLAGE LEVY ON PROPERTY OWNERS Homesteaded Properties In 1992,voters approved an amendment to the Florida Constitution known as Amendment 10,also known as 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 3.0% 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, 2020,the median value of homesteaded property in Miami Beach is $212,696 while the average is $545,281. The impact of the City's FY 2021 Total Combined millage rate of 6.0515 mills on the median homesteaded property within the City would be an increase of$110 while the impact to the average value homesteaded property within the City would be an increase of$286 as summarized in the table below. Homesteaded Properties FY 2020 FY 2021 Median** Average** Median** Average** Preliminary Taxable Value** $195,522 $500,407 $212,696 $545,281 City of Miami Beach Operating $1,120 $2,867 $1,218 $3,124 Voted Debt 57 147 69 176 Total Miami Beach $1,177 $3,014 $1,287 $3,300 $Change in Taxes Operating $98 $257 Voted Debt 12 29 Total Miami Beach $110 $286 **Source: Miami-Dade County Property Appraiser's—2019 and 2020- 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 10.0%(does not apply to school millage rates).While the citywide average increase in property values is 4.1%,the property value of individual properties may increase up to, but not more than 10.0%(excluding the school millage portion of the property tax bill). However, an individual property owner may see a higher than 10.0% 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 higher than 10.0%. 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 68.7% of a Miami Beach property owner's tax bill. Page 14 of 281 FY 2021 Final Millage Rates September 29, 2020 Page 5 The proposed FY 2021 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 remained flat at 0.4780 mills. The tax rate for the Miami-Dade School District decreased by 0.0190 mills to 7.1290 mills. The Children's Trust tax rate decreased by 0.0173 mills to 0.4507 mills. Combined, the millage rates for the South Florida Water Management District,Okeechobee Basin, Everglades Project,and Florida Inland Navigational District decreased by 0.0120 mills to 0.2995 mills. With the proposed rates for FY 2021,the Miami Beach portion of the tax bill is approximately 31.3% of the total tax bill. Itis important to note that the FY 2021 Countywide millaqe rate is 0.9571 mills, or 15.0%, less than the Countywide millaqe in FY2007, as compared to the City's FY2021 millaqe rate that is 1.6215 mills, or 21.1%, less than the City's FY 2007 millaqe. Further,the School Board millage is 0.9760 mills below the FY 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 rate changes is provided in the following table. OVERLAPPING % of Variance Variance %of TAX MILEAGE FY 2007 FY 2007 FY 2020 FY 2021 from from FY 2021 Total FY 2007 FY 2020 Total City of Miami Beach General 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% 0.2933 0.3227 0.0237 0.0294 1.7% Subtotal 7.6730 32.9% 6.0221- 6.0515 (1.6215) 0.0294 '31.3% 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% 0.4780 0.4780 0.1930 0.0000 2.5% Subtotal 6.3860 27.4% ,5.4289. ' 5.4289 (0.9571) 0.0000 28.0% School Board 8.1050 34.8% 7.1480 7.1290 (0.9760) (0.0190) 36.8% Children's Trust 0.4220 1.8% 0.4680 0.4507 0.0287 (0.0173) 2.3% Other 0.7360 3.2% 0.3115 0.2995 (0.4365) (0.0120) 1.5% Total 23.3220 '100.0% 19.3785. 19.3596 (3.9624) (0.0189) 100.0% IMPACT OF COMBINED TAX RATES OF OVERLAPPING JURISDICTIONS ON HOMESTEADED PROPERTIES The City of Miami Beach's preliminary 2020 median and average homesteaded residential taxable values are $212,696 and $545,281, respectively. Applying the total combined millage rates proposed for FY 2021 to the median and average taxable values results in a property tax increase of approximately$330 for the median and$858 for the average homesteaded residential tax bill in the City of Miami Beach. Median properties would pay approximately $4,118 per homesteaded property for all taxing jurisdictions combined, while the property taxes for average homesteaded residential properties Page 15 of 281 FY 2021 Final Millage Rates September 29, 2020 Page 6 would be approximately $10,556 per homesteaded property. Of these taxing jurisdictions, the highest component is the Miami-Dade School Board at$1,516 for a median valued homesteaded property and $3,887 for an average valued homesteaded property in the City of Miami Beach. The following table provides examples of changes in the property taxes levied for homesteaded properties using the tax rates proposed for FY 2021 by jurisdiction. Impact on Homesteaded Properties FY 2020 FY 2021 Median** Average** Median** Average** Preliminary Taxable Value** $195,522 $500,407 $212,696 $545,281 City of Miami Beach Operating $1,120 $2,867 $1,218 $3,124 Voted Debt 57 147 69 176 Total Miami Beach $ 1,177 $3,014 $1,287 $3,300 Miami Dade County 1,061 2,717 1,155 2,960 Schools 1,398 3,577 1,516 3,887 Other 152 390 160 409 • Total Combined $3,788 $9,698 $4,118 $10,556 Change in Taxes City of Miami Beach Operating $98 $257 Voted Debt 12 29 Total Miami Beach $110 $286 Miami Dade County 94 243 Schools 118 310 Other 8 19 Total Combined $330 $858 **Source: Miami-Dade County Property Appraiser's—2019 and 2020-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. 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 2000 and FY 2010, property tax rates declined approximately 2.8 mills. In FY 2008 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 2006 and FY 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 FY 2017, FY 2018, and FY 2019 were the lowest it has been in at least 20 years. For FY 2020 and FY 2021,the slight increases in the Total Combined millage rates are solely attributed to the approved G.O. Bond Program approved by the voters on November 6, 2018. Page 16 of 281 FY 2021 Final Millage Rates September 29, 2020 Page 7 Millage Rates Tax Levy(in millions) General Fund Total (including , Final/ S.Pointe, Taxable Revised Total General Total Tax Capital Property Taxable Combined Fund/RDA Levy Renewal& Taxable Values Values Citywide Operating including Repl.& Values Chart (billions) (billions) Millage 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 $ 39.31 6.0221 5.7288 $ 229.41 $ 187.39 FY 2021 $ 41.74 * 6.0515 5.7288 $ 239.98 $ 196.62 *Data not available until next calendar year Page 17 of 281 FY 2021 Final Millage Rates September 29, 2020 Page 8 Total Combined Millage Rates 9.0000 - --- -------- - --------- ---- -_-. { 8.0000 -- ..�----- - - -- I 7.0000 - ------- __--_---------------------------- 6.0000 - - --- -- - -- ---- c 3.0000 - -- - - - - - -- -- - -- --- - 2.0000 - - -- -- - - -- -- -- - --- -- -- -- II i 0.0000 [FY Z0071FY2�FY2009f FY20101FY20111FY2012 FY20131-FY20141FY2015IFY2016 FY 20171 FY20181FY2019 FY20201FY20211 re Debt Service Millage 10.2990 0.2415 10.2375 0.2568 1 0.2870 0.2884 0.2568!0.2529 0.2295'0.2031 10.1796 .1664 0.1600 0.2933[0.3227 j I■Operating Millage 17.374111 5.6555 15.6555 15.6555 6.2155 16.1655 16.0909 15.8634 5.79421 5.7092 15.7092)5.7224 5.7288,5.7288 1 5.7288 - -�-- - f---;---- -- ---{ E Total Combined 17.6730 5.8970 15.89305.9123,6.5025 6.45391-6.3477:16.1163 6.0237.5.9123 5.8888 5.8888 15.8888 1 6.0221 16.0515 Property Values and Tax Levy The General Fund operating budget reflects a greater diversification of revenues since FY 2007. The City Administration's long-term objective has been to reduce the subsidies from the Parking Enterprise Fund and the City Center RDA Fund to the General Fund in order reduce the burden on the Parking Enterprise Fund and City Center RDA Fund. Consistent with this strategy, and due to the significant reduction in revenues being experienced resulting from COVID-19,the Administration recommends the elimination of the $1.2 million transfer from the Parking Enterprise Fund to the General Fund in FY 2021 while the City Center RDA subsidy is recommended to remain the same as FY 2020 at$4.4 million to partially offset the decrease in General Fund revenues impacted by COVID-19. Despite the proposed FY 2021 General Fund operating budget increasing from $237.7 million in FY 2007 to $327.6 million for FY 2021, which is an increase of$89.9 million over the last fourteen years combined, the property tax levy has only,increased by $56.5 million over the same period. Page 18 of 281 FY 2021 Final Millage Rates September 29, 2020 Page 9 Property Values and Tax Levy Trend $340.0 $45.0 $320.0 $300.0 $40.0 $280.0 $260.0 $35.0 { c $240.0 r $30.0 'o$220.0 lim $2180.: _ ■ ■_Bove ■ ■ I $25.0 rr7 ■■ ■ ■ ■ ■ ■ ■ 1 E' tiiji U ; 111 ■ ■ ■ ■ ■ $20.0$lI ■ ■ ■ ■ ■ ■ ■' ■ ■ ■ ■. ■ ■ $75.0 2- v $100A I ■ ■ ■ ■ ■ • ■ ■' ■ ■. ■ ■ ■ ■ $600 ■ ii • ■ ■ ■ ■ ■ ■ ■ ■ ■ $10.0 $2o.o I ■ ■. ■ ■ I ■ ■ ■, • : $s.o $0 1 . ■ ■ . . ■ . . . . ■ ■ $0 $20.0 FY 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 2021 Property Values Tax Levy Including 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 1,2020),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 FY 2021.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 FY 2021 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 June 16, 2020, July 17, 2020 and July 24, 2020 Finance and Economic Resiliency Committee(FERC)Budget Briefings,the FY 2021 Total General Operating millage rate is proposed at 5.7288 mills, which reflects no change from the prior year Adopted FY 2020 Total General Operating millage rate. Based on the July 1,2020 Certification of Taxable Value received from the Miami-Dade County Property Appraiser, the levy of 5.7288 mills would generate approximately $196.6 million in General Fund property tax revenues, which is an increase of approximately$9.2 million over the FY 2020 budgeted property tax revenues Citywide (net of the City Center RDA). Page 19 of 281 FY 2021 Final Millage Rates September 29, 2020 Page 10 July 2019 July 2020 Certified Certified Property Assessment Existing Values 39,796,383,821 40,429,722,472 New Construction 302,508,638 1,313,276,514 Total Citywide 40,098,892,459 41,742,998,986 City Center RDA 6,258,372,786 6,204,385,940 Citywide Total-Net of City Center RDA 33,840,519,673 35,538,613,046 Property Tax Revenue Projection 187,389,000 196,617,000 Property Tax Revenue Projection Variance 9,228,000 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 6.2694 mills(equivalent to a 3.22% increase in Property Tax revenues).The 1.0322 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 6.8963 mills (equivalent to a 10.0% 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 6.8693 mills. Adoption of the total general operating millage rate of 5.7288 mills proposed for FY 2021 would, therefore, require a majority approval (4 of 7 votes) by the Mayor and City Commission per the State of Florida's Truth-in-Millaqe (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 FY 2021 at 5.7288 mills and 0.3227 mills, respectively. JLM/JW/TOS �•a Page 20 of 281 0 CITY OF MIAMI BEACH NOTICE OF PUBLIC HEARINGS SEPTEMBER 29,2020 VIRTUAL CITY COMMISSION MEETING The September 29,2020 City of Miami Beach Commission Meeting will be held as a Virtual Meeting with the Hs/or,Commissioners, and City stall participating through video conferencing.The Virtual City Commission Meeting will be breedcr s live on Miami Beach TV(MBTV),viewable on the City's website at haps://www,mlamlbeachtLgov/govemmenUmbty/,as well as 1 Atlantic Broadband Cable channet 660,AT&T U-verse channel 99,Hotwire Communications channel 395,and ROKU devic on PEG.TV channel, and on social media at htlps://wwwfacebook.com/cityolmlamibeach.To participate or provide commen .,the public may join the Virtual City Commission Meeting al:hops://us02web.zoom.usfl/82602220662 or via telephone at 1..12.626.6799(U.S.)or 888.475.4499(Toll Free).The Webinar ID is:82602220652e.Members of the public wanting to speak ata,Item during the Virtual City Commission Meeting,must click the•'raise hand'Icon If using the Zoom app or press'9 on the telephone to raise their hand. NOTICE IS HEREBY GIVEN that the hallowing public hearings will be heard by the Mayor and City Commissioners of the City of Miami Beach,Florida,on September 29,2020 at the following these,or as soon thereafter of the mailer can be heard: • 5:01 D.m,Second Reading Public Hearing 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 2021 FOR GENERAL OPERATING PURPOSES,WHICH • IS TWO AND EIGHT TENTHS PERCENT(2.8%1 MORE THAN THE"ROLLED-BACK'RATE OF 5.5126 Lu LLS;AND 2)THE DEBT A SERVICE MILLAGE RATE OF 0.3227 MILLS.This Resolution is being heard pursuant to Sect/ore§§ r66.041 and 200.065 F.S. inquiries may be directed to the Office of Budget&Performance Improvement at 305.673.7510. 5:01 Dein,Second Reading Public Hearing rTt - A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE • FiNAL BUDGETS FOR THE GENERAL,G.O.DEBT SERVICE,RDA AD VALOREM TAXES,ENTERPRISE,INTERNAL SERVICE, AND SPECIAL REVENUE FUNDS FOR FISCAL YEAR 2021.This Resolution is being heard pursuant to Sections§§ 165.041 and 200.065 F.S.Inquiries may be directed to the Office of Budget&Performance improvement at 305.673.7510. eel 5:02 e,m.Second Reeding Public Haying A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE FINAL AD VALOREM MILLAGE RATE OF 0.7497 MILLS FOR FISCAL YEAR 2021 FOR THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT,WHICH IS TWO AND TWO TENTHS PERCENT(2.2Y)LESS THAN THE"ROLLED-BACK"RATE OF 0.7666 MILLS.This Resolution,is being heard pursuant to Sections§§166.041 and 200.066 F.S.Inquiries may be directed to the Office of Budget&Performance Improvement of 305.673.7510. 5:02 p.m.Second Reading Public Hearing A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE FINAL OPERATING BUDGET FOR FISCAL YEAR 2021.Thi;Resolution is being heard pursuant to Sections§§166.041 arid 200.065 F.S.Inquiries may be directed to the Office of Budget&Performance linprovemenl at 305.673.7510. 5:03 p.m,Second Reading Public Hearing A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,FLORIDA,ADOPTING THE FINAL CAPITAL IMPROVEMENT PLAN FOR FISCAL YEARS 2021-2025 AND ADOPTING THE CITY OF MIAMI BEACH FINAL CAPITAL BUDGET FOR FY 2021.This Resolution is being heard pursuant to Sections§§166.041 and 200.065 P.S.Inquiries maybe directed to the Office of Budget&Performance Improvement at 305.673.7510. INTERESTED PARTIES are invited to lake part in this meeting or be represented by an agent.The public may submit written comments by sending an small to:CllyClerkt?lmlamibeachtl,gov by 5:00 p.m.the day before the Virtual City Commission Meeting. Please Identify the Agenda item Number in the einall subject line.Emits received will be forwarded to the Mayor and Commivalonars and will be included as a part of the meeting record. Copies of Agenda items are available far public Inspection al:Mips:r/www.miemibeachll.gov/clty-ha8/city-clerklager,da-archlve- maln-page-2/.This meeting,or any Item therein,may be continued,and under such circumstances,additional legal nollce need not be provided. Pursuant to Section 286.0105,Fla.Stet.,the City hereby advises the pubic that if a person decides to appeal any decision made by the City Commission with respect to any matter considered at IN meeting or its hearing,such person must ensure that a verbatim record of the proceedings Is made,which record Includes the testimony end 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. To request this material to alternate format, sign language interpreter (live-day notice required), Information on access ler Persons with disabilities.and/or any accommodation to review any document or participate in any City-sponsored proceedings, call 305.604.2489 and select 1 for English or 2 for Spanish,then option 6;TTY users may call via 71.1(Florida Relay Service). AUDIO/VISUAL PRESENTATIONS Members of the public may present audio/visual(AV)materials relating to Agenda Items at Virtual City Commission meetings by utilizing the City's AV equipment,provided thptmaterials are submitted to the Department al Marketing and Communications by 8:30 a,m..one(1)business day prior to the meeting.Advance submittal of a presentation will allow the Communications Department to plan for the use of the appropriate AV equipment.AV materials must be submitted via email at communlcatIons:lmlamibeachtl.gov. The body of the email must include a notation fisting the name or group,contact person,daytime telephone number,small address, description/title of the presentation,and Agenda Item Title as well as the Agenda Item Number.Please reference"Audio/Visual oMaterial'in the email subject tine.Acceptable formats for electronic submission are.pot,.ppt..pptx,.ops,,ppsx,mew,.avi,and rr .mow.(Note that.pdf Is the preferred format for PowerPoint presentations.) Please note that Governor DeSentls'Executive Order Number 20-69,as extended by Executive Orders 20-121,20-123,20-139, m 0 20-150,and 20-193,suspended the requirement of Section 112,286,Florida Statutes,the Florida Sunshine Law,that a quorum p must be present In person•and that a local government body meet al a specific public place,The Executive Order also allows local W az government bodies to utilize communications media technology,such as telephonic and video conferencing for local government r^rte++ body meetings. p Rafael E.Granado,City Clerk City of Miami Beach Ad:09292020.01 Page 23 of 281 •