Resolution 2022-32333 RESOLUTION NO. 2022-32333
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING: 1) THE
FINAL AD VALOREM MILLAGE OF 5.8155 MILLS FOR FISCAL
YEAR 2023 FOR GENERAL OPERATING PURPOSES, WHICH
IS THIRTEEN AND TWO TENTHS PERCENT (13.2%) MORE
THAN THE "ROLLED-BACK" RATE OF 5.1376 MILLS; AND 2)
THE DEBT SERVICE MILLAGE RATE OF 0.2360 MILLS.
WHEREAS, on July 20, 2022, the Mayor and City Commission adopted Resolution No.
2022-32252, which set the proposed Fiscal Year (FY) 2023 general operating millage rate at
5.8155 mills (excluding debt service) for general operating purposes, which is an increase of
0.0529 mills over the adopted FY 2022 general operating millage rate of 5.7626 mills, and 0.2360
mills for debt service, which is a decrease of 0.0529 mills from the adopted FY 2022 debt service
millage rate of 0.2889 mills that is necessary to fund the required debt service for outstanding
General Obligation Bonds, including the first tranche of the 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 FY 2023 general operating millage rate of 5.8155 mills is comprised of a
General millage rate of 5.6636 mills that funds operating costs in the General Fund, a Capital
Renewal and Replacement (CRR) millage rate of 0.0499 mills 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 0.1020 mills that provides a
dedicated source of funding for General Fund capital projects; and
WHEREAS, at the first public hearing on September 14, 2022, in accordance with Section
200.065, Florida Statutes, the Mayor and City Commission tentatively adopted the operating
millage rate of 5.8155 mills for general operating purposes, and 0.2360 mills for debt service, for
FY 2023; 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 FY 2023 general operating purposes; and 2)adopt the required
debt service millage rate for FY 2023; 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 FY 2023
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 5.8155 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 thirteen and two-tenths percent (13.2%) more
than the "Rolled-back" rate of 5.1376 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 0.2360 mills.
PASSED AND ADOPTED this 28th day of September 2022.
ATTEST:
Dan Gelber, Mayor
Rafael . Granado, City Clerk
APPROVED AS TO FORM AND
LANGUAGE AND FOR EXECUTION
. P�� c ''. SEP 2 9 2022
IPlCORP GRATED' = /O 2422
Cit AttorneyD to
Resolutions - R7 A
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: September 28, 2022
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 5.8155 MILLS FOR FISCAL YEAR 2023 FOR GENERAL c2
OPERATING PURPOSES, WHICH IS THIRTEEN AND TWO TENTHS
PERCENT (13.2%) MORE THAN THE "ROLLED-BACK" RATE OF 5.1376
MILLS;AND 2)THE DEBT SERVICE MILLAGE RATE OF 0.2360 MILLS.
RECOMMENDATION
See attached Memorandum.
SUPPORTING SURVEY DATA
N/A
FINANCIAL INFORMATION
N/A
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
Page 166 of 508
ID Memo- FY 2023 Citywide Millage
Page 167 of 508
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Honorable Mayor Dan Gelber and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: September 28, 2022
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, ADOPTING: 1) THE FINAL AD VALOREM MILLAGE OF 5.8155
MILLS FOR FISCAL YEAR 2023 FOR GENERAL OPERATING PURPOSES, WHICH
IS THIRTEEN AND TWO TENTHS PERCENT (13.2%) MORE THAN THE "ROLLED-
BACK" RATE OF 5.1376 MILLS; AND 2) THE DEBT SERVICE MILLAGE RATE OF
0.2360 MILLS
STRATEGIC PLAN SUPPORTED
Organizational Innovation — Ensure strong fiscal stewardship
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) 2023:
General Millage 5.6636 mills
Capital Renewal & Replacement Millage 0.0499 mills
Pay-As-You-Go (PayGo) Millage 0.1020 mills
Total General Operating Millage 5.8155 mills
Voted Debt Service Millage 0.2360 mills
Total Combined Millage 6.0515 mills (same as last year)
2) The final total combined millage rate of 6.0515 mills for FY 2023 reflects no change
compared to the total combined millage rate of 6.0515 adopted for FY 2022.
The first public hearing on the tentative millage rates for FY 2023 was held on September 14,
2022. The millage rates herein are those which were tentatively adopted at the first public hearing
on that day.
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:
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FY 2023 Final Millage Rates
September 28, 2022
Page 2
1. Adopt a final ad valorem millage rate for FY 2023 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 FY 2023, which also includes the budgets for
Enterprise, Internal Services, Special Revenue, and G.O. Bond Debt Service Funds, as
well as the City's Tax Increment Financing (TIF) portion of the City Center RDA and North
Beach CRA. This is accomplished by adopting a companion Resolution (see
accompanying City Budget Agenda Item).
ANALYSIS OF PROPERTY VALUES IN MIAMI BEACH
On July 1, 2022, the City received the 2022 Certification of Taxable Value from the Miami-Dade
County Property Appraiser. Overall, as summarized below, the City's property values increased
approximately $4.6 billion, or 11.2%, from the 2021 Certified Taxable Values of $41.9 billion to
the 2022 Certified Taxable Values of$46.5 billion, which include a $3.9 billion, or 9.5%, increase
in existing property values and a $716.4 million increase in new construction values.
July 2021 li July 2022 j $
Certified Certified II'1 Change ,
Property Assessment
Existing Values 41,866,674,794 45,828,304,965 3,961,630,171
New Construction 0 716,389,105 716,389,105
Total Citywide 41,866,674,794 46,544,694,070 4,678,019,276
City Center RDA 5,977,864,104 6,023,225,280 45,361,176
North Beach CRA- 0 1,585,511,443 1,585,511,443
Citywide Total-Net of RDA and CRA 35,888,810,690 38,935,957,347 3,047,146,657
DETERMINING THE VOTED DEBT SERVICE MILLAGE LEVY
For FY 2023, the total required debt service payment is approximately $10.4 million, which is
comprised of remaining debt service on the City's outstanding 2011 G.O. Bonds of $2.3 million
plus $8.1 million attributed to the first tranche of the G.O. Bonds approved by the voters on
November 6, 2018, requires the levy of a Voted Debt Service millage rate of 0.2360 mills. The FY
2023 Voted Debt Service millage rate is 0.0529 mills less than the Voted Debt Service millage
rate adopted in FY 2022 of 0.2889 mills, which is proposed to be applied to the Capital Renewal
& Replacement and Pay-As-You-Go component of the General Operating millage rate as
recommended by the Administration and approved by the Finance and Economic Resiliency
Committee (FERC) at its July 15, 2022 Budget Briefing and subsequently adopted by the City
Commission on July 20, 2022 through Resolution No 2022-32252.
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FY 2023 Final Millage Rates
September 28, 2022
Page 3
I FY 2022 FY 2023 I Increase/
Adopted Proposed I (Decrease)
General 5.6636 5.6636 0.0000
Capital Renewal &Replacement 0.0235 0.0499 0.0264
Pay-As-You-Go(PayGo) 0.0755 0.1020 0.0265
Total General Operating'Millage 5.7626 5.8155 0.0529
Debt Service 0.2889 0.2360 (0.0529)
Total Combined Millage 6.0515 6.0515 0.0000.
IMPACT OF MILLAGE LEVY IMPACT 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, 2022, the median value of homesteaded property in Miami
Beach is $240,385 while the average is $664,556. The impact of the City's proposed FY 2023
Total Combined millage rate of 6.0515 mills on the median homesteaded property within the City
of Miami Beach would be an increase of$119 while the impact to the average value homesteaded
property within the City of Miami Beach would be an increase of$578 as summarized in the table
below.
Homesteaded Properties
FY 2022 I FY 2023 =I
Median** 11 Average** IL Median** i Average**
Preliminary Taxable Value** $220,738 $569,192 $240,385 $664,556
City of Miami Beach
Operating $ 1,272 $3,280 $ 1,398 $ 3,865
Voted Debt 64 164 57 157
Total Miami Beach $ 1,336 $3,444 $1,455 $4,022
$Change in Taxes
Operating $126 $585
Voted Debt (7) (7)
Total Miami Beach $119 $578
**Source:Miami-Dade County Property Appraiser's—2021 and 2022-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
11.2%, 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
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FY 2023 Final Millage Rates
September 28, 2022
Page 4
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. For
FY 2023, these taxing authorities represent 67.8% of a Miami Beach property owner's tax bill.
The proposed FY 2023 countywide tax rate for Miami-Dade County decreased by 0.0467 mills
from 4.6669 to 4.6202 mills; the library tax rate decreased by 0.0028 mills from 0.2840 to 0.2812
mills; and the debt service millage decreased by 0.0222 mills from 0.5075 to 0.4853 mills. The
tax rate for the Miami-Dade School District decreased by 0.4200 mills from 7.0090 to 6.5890 mills.
The Children's Trust tax rate remained flat at 0.5000 mills. Combined, the millage rates for the
South Florida Water Management District, Okeechobee Basin, Everglades Project, and Florida
Inland Navigational District decreased by 0.0271 mills from 0.2892 to 0.2621 mills.
With the proposed rates for FY 2023, the Miami Beach portion of the tax bill is approximately
32.2% of the total tax bill. It is important to note that Miami-Dade County's total FY 2023 millage
rate of 5.3867 mills is 0.9993 mills, or 15.6%, less than Miami-Dade County's total FY 2007
millage rate of 6.3860 mills, as compared to the City's total FY 2023 millage rate of 6.0515 mills
that is 1.6215 mills, or 21.1%, less than the City's total FY 2007 millage rate of 7.6730 mills.
Further, the FY 2023 School Board millage of 6.5890 mills is 1.5160 mills less than 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.
of -----1---- ---1--Variance Variance %of
OVERLAPPING I FY 2007 • FY 2007 , FY 2022 FY 2023 I from I from I FY 2023 i
TAX MILLAGE
Total ! , FY 2007 + FY 2022 1 Total
City of Miami Beach
General Operating 7.1920 30.8% 5.6636 • 5.6636 (1.5284) 0.0000 30.1%
Renewal&Replacement 0.1820 0.8% 0.0235 0.0499 (0.1321) 0.0264 0.3%
Pay-As-You-Go Capital 0.0000 0.0% 0.0755 0.1020 0.1020 0.0265 0.5%
Operating Millage 7.3740 31.6% 5.7626 5.8155 (1.5585) 0.0529 31.0%
Voted Debt Service 0.2990 1.3% 0.2889 0.2360 (0.0630) (0.0529) 1.3%
Subtotal 7.6730 32.9% 6.0515 6.0515 (1.6215) 0.0000 32.2%
Miami Dade County
Countywide 5.6150 24.1% 4.6669 4.6202 (0.9948) (0.0467) 24.6%
Library 0.4860 2.1% 0.2840 0.2812' (0.2048) (0.0028) 1.5%
Debt Service 0.2850 1.2% 0.5075 0.4853 0.2003 (0.0222) 2.6%
Subtotal 6.3860 27.4% 5.4584 5.3867 (0.9993) (0.0717) 28.7%
School Board 8.1050 34.8% 7.0090 6.5890 (1.5160) (0.4200) 35.1%
Children's Trust 0.4223 1.8% 0.5000 0.5000 0.0777 0.0000 2.7%
Other 0.7355 3.2% 0.2892 0.2621 (0.4734) (0.0271) 1.4%
' Total •23.3218 100.0% ,19.3081 18.7893 (4.5325) (0.5188) 100.0%
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FY 2023 Final Millage Rates
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Page 5
IMPACT OF COMBINED TAX RATES OF OVERLAPPING JURISDICTIONS ON
HOMESTEADED PROPERTIES
The City of Miami Beach's preliminary 2022 median and average homesteaded residential taxable
values are $240,385 and $664,556, respectively. Applying the total combined millage rates
proposed for FY 2023 to the median and average taxable values results in a property tax increase
of approximately $255 for the median and $1,492 for the average homesteaded residential tax
bill in the City of Miami Beach.
Median properties would pay approximately $4,517 per homesteaded property for all taxing
jurisdictions combined, while the property taxes for average homesteaded residential properties
would be approximately $12,487 per homesteaded property. Of the taxing jurisdictions, the
highest component is the Miami-Dade School Board at$1,584 for a median valued homesteaded
property and $4,379 for an average valued homesteaded property in the City of Miami Beach.
The following table provides a summary of changes in the property taxes levied for homesteaded
properties using the tax rates proposed for FY 2023 by jurisdiction.
Impact on Homesteaded Properties
it FY 2022 ji =FY 2023
Median** IL Average** Median' IL Average**
-
Preliminary Taxable Value** $220,738 $569,192 $240,385 $664,556
City of Miami Beach
Operating $1,272 $3,280 $1,398 $3,865
Voted Debt 64 164 57 157
Total Miami Beach $1,336. $3,444 $1,455 $4,022
Miami Dade County 1,205 3,107 1,295 3,580
Schools 1,547 3,989 1,584 4,379
Other 174 455 183 506
Total Combined $4,262 $10,995 $4,517 $12,487
Change in Taxes
City of Miami Beach
Operating $126 $585
Voted Debt (7) (7)
Total Miami Beach $119 $578
-
Miami Dade County 90 473
Schools 37 390
Other 9 51
Total Combined $255 $1,492
**Source: Miami-Dade County Property Appraiser's—2021 and 2022-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 individual property values.
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FY 2023 Final Millage Rates
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Page 6
Historical Perspective
The table below outlines the City's millage rate trend. For FY 2023, the City's Total Combined
millage rate is proposed to remain flat at 6.0515 mills from the Total Combined millage rate
adopted for FY 2022.
Millage Rate History
� 1
9.0000
8.0000 -
7.0000 -
6.0000 - - - - -
5.0000 - - - - - - - - - - - - - -
m
4.0000 - - - - - - - - - - - - -
cc
rn
2.0000 - - - - - - - - - - - - - - - - -
0.0000 - FY FY FY T 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 2022 2023
oDebt Service Millage 0.2990 0.2415 0.2375 0.2568 0.2870 0.2884 0.2568 0.2529 0.2295 0.2031 0.1796 0.1664 0.1600 0.2933 0.3227 0.2889 0.2360
•Operating Millage 7.3740 5.6555 5.6555 5.6555 6.2155 6.1655 6.0909 5.8634 5.7942 5.7092 5.7092 5.7224 5.7288 5.7288 5.7288 5.7626 5.8155
Total Combined 7.6730 5.8970 5.8930 5.9123 6.5025 6.4539 6.3477 6.1163 6.0237 5.9123 5.8888 5.8888 5.8888 6.0221 6.0515 6.0515 6.0515
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, 2022), 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 2023.
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 2023 millage rates, the Mayor and City Commission may, at any
time prior to final adoption, lower the proposed millage rates. However, increasing the proposed
millage rate may only be accomplished by completing an expensive mailing and advertising
process to every property owner in the City of Miami Beach. The City's proposed millage rates,
as well as those of other taxing authorities, will be included in the Truth-in-Millage (TRIM)
statement sent to each property owner in the City of Miami Beach by the Miami Dade County
Property Appraiser.
MAXIMUM MILLAGE DETERMINATION
For FY 2023, the Total General Operating millage rate is proposed at 5.8155 mills, which reflects
an adjustment of 0.0529 mills based on the realignment of the FY 2023 Voted Debt Service
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FY 2023 Final Millage Rates
September 28, 2022
Page 7
millage rate reduction of 0.0529 mills, as approved by the FERC on July 15, 2022 and
subsequently by the City Commission on July 20, 2022 through Resolution No. 2022-32252.
Based on the July 1, 2022 Certification of Taxable Value received from the Miami-Dade County
Property Appraiser, the levy of 5.8155 mills would generate approximately $226.5 million in
General Fund property tax revenues, which is an increase of approximately$26.9 million over the
budgeted FY 2022 General Fund property tax revenues of$199.6 million (net of the City Center
RDA and newly created North Beach CRA).
Adoption of the Total General Operating millaqe rate of 5.8155 mills for FY 2023 requires 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 the final
total general operating and voted debt service millage rates at 5.8155 mills and 0.2360 mills,
respectively, for FY 2023.
ATH/JW/TOS
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