93-20893 Reso RESOLUTION NO. 93-20893
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING
THE AD VALOREM MILLAGE OF 8.238 MILLS FOR
GENERAL OPERATING PURPOSES WHICH IS THE SAME
AS THE "ROLLED-BACK" RATE OF 8.238; AND 2.311
MILLS FOR DEBT SERVICE FOR THE CITY OF MIAMI
BEACH, FLORIDA, FOR FISCAL YEAR 1993/94.
BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, that, pursuant to Section 200. 065
Florida Statutes, there is hereby levied a tax for the Fiscal Year
1993/94, on .all taxable and non-exempt real andipersonal 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 8.238
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 herein reflected is the same
as the "rolled-back" rate of 8.238.
(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 2 . 311 mills.
PASSED and ADOPTED this 22nd day of ' e•tember 1911 .
Adill
r ►FOR
ATTEST:
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CITY CLERK
PFL:DJJ:me
FORM APPROVED
PT.
Date V5',R
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010
FAX: (305) 673-7782
COMMISSION MEMORANDUM NO. 5l9-q3
TO: Mayor Seymour Gelber and DATE: Sept. 22, 1993
Members of the City Commission
FROM: Roger M. Carl
City Manager
SUBJECT: A RESOLUTION ADOPTING : 1)THE AD VALOREM MILLAGE OF 8.238 MILLS FOR
GENERAL OPERATING PURPOSES WHICH IS THE SAME AS THE"ROLLED BACK"
RATE OF 8.238 MILLS;2)THE DEBT SERVICE MILLAGE RATE OF 2.311 MILLS FOR
FISCAL YEAR 1993/94.
RECOMMENDATION
The Administration recommends that the City Commission adopt the
attached resolution which sets the following:
1) Tentatively adopted millage rates for FY 1993/94 •
General Operating 8.238 mills ( 9.302 last year)
Debt Service 2.311 mills ( 2.545 last year)
Total 10.549 mills (11.847 last year)
2) The tentatively adopted millage rate of 8.238 mills is the
same as the "rolled-back" rate of 8.238 mills.
The first public hearing on the proposed millage rates for FY 93/94
was held on September 14, 1993. At the end of that public hearing,
the recommended millage rates were tentatively adopted.
PROCEDURE
Florida Statutes 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 an ad valorem millage rate for FY 1993/94 operating
, purposes.
This is accomplished by adopting a Resolution that includes
the percent increase or decrease over the "rolled back" rate;
the required Debt Service millage rate.
Further, this Resolution must be read aloud, in its entirety,
prior to adoption.
2. Adopt the general operating budget for FY 1993/94. Also
included, are budgets for the Enterprise and Internal Service
Funds.
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AGENDA• 3._ Ai\
ITEM
DATE
•
Operating and Debt Service Millage
September 14, 1993
Page - 2 -
ANALYSIS
On July 1, 1993, the City received the "1993 Certification of
Taxable Value" from the Dade County Property Appraiser stating the
taxable value for the City of Miami Beach is $4,526,875,241. This
increase over the previous year's final value ($3,932,985, 608)
includes new construction of $85,820, 167 (2.2 percent) and an
increase in the value of existing properties .of $508, 069,466 (12 .9
percent) . The final value for 1992 ($3,932,985,608) represents an
equalization (appeal) loss of $36, 050,691 from last year's
certified value of $3,969, 036, 299. The value of one mill has gone
from $3,932,985 (after appeals) in FY 1992/93 to $4,526,875 or a
15. 1 percent increase of $593,890 per mill.
The comparative assessed value of the Miami Beach Redevelopment
Area (south of Sixth Street) increased by $40,996,789 or 23.9
percent from $171,397,718 to $212,394,507. During the first year
of designation as a redevelopment area, the City Center/Historic
Convention Village Redevelopment Area increased by $80,744, 176 or
27. 6 percent from $292,572,271 to $373, 316,447.
ANALYSIS OF PROPERTY VALUE CHANGES
An analysis of property value changes between 1992 and 1993 was
performed on data provided by the Dade County Property Appraiser.
This analysis revealed the following summary observations:
1. Property value increase of 27.1% was the largest in the south
Beach area (south of Dade Boulevard) . The mid-Beach area (Dade
Boulevard to 63rd Street) increased by 1..5%. North Beach
(north of 63rd Street) increased by 9.0%.
2 . Overall, commercial properties increased by 21.8%. The
condominium increase of 19.8% is skewed by the first time
inclusion of Fisher Island properties which increased by 733%.
Single family residential properties increased by 5.2%. All
other properties increased by 9.4%
Further details of this analysis are illustrated in the table
below:
Fisher
North Middle South Islands Island TOTAL
Residential 5.9% 1.2% 4.6% 7.9% n/a 5.2%
Condominium 9.5% -3.2% 21.6% 0.0% 733% 19.8%
Commercial 11.3% 2.8% 31.6% 13.2% n/a 21.8%
Other 9.6% 8.3% 9.9% 13.1% n/a 9.4%
TOTALS 9.0% 1.5% 27.1 8.1% 733% 15.8%
NOTE: Other includes hospitals, schools, etc.
OPERATING MILLAGE
Consistent with the directive from the City Commission to lower the
millage rates and the commitment to the fiscal health plan, the
Administration is recommending an operating millage rate of 8.238
mills. The proposed rate of 8.238 mills represents a decrease of
1.064 mills or 11.4 percent from the prior year's level of 9.302
mills. The proposed rate is the "rolled-back" rate, which
eliminates any gains from property value increases, exclusive of
new construction. This decrease is the largest decrease in the
millage rate in the past 13 years for Miami Beach property owners
and the second consecutive year for which the tax rate has been set
at the "rolled-back" rate or below.
135
•
Operating and Debt Service Millage
September 14, 1993
Page - 3 -
The proposed rate of 8.238 mills will generate ad valorem tax
revenues of $36,173, 626 to the General Fund. This amount is
$361,252 more than the prior year's levy of $35,812,374 reflecting
a 1.00 percent increase. The entire additional ad valorem revenue
for FY 93/94 is due to new construction. No advantage has been
taken from the increase in existing values. In fact ad valorem
revenue reduction in FY 92/93 over the previous fiscal year was
$1,508,989, which means that over a two-year period Miami Beach
property owners have received the benefit of a net reduction of
$1, 147, 737 in ad valorem taxes.
DEBT SERVICE MILLAGE
The debt service payment for FY 93/94 of $10,398,977 is $1, 044,916
lower than the amount that would have been required without the
refinancing of general obligation bonds that occurred in February
1993 . This cost avoidance means that the required debt service
millage will be 2.311 which is 0.238 mills lower than the amount
that would have been needed without the refinancing. Ad valorem
revenues will be supplemented by $250,000 from special assessment
repayments from the 41st Street and Ocean Drive districts.
As stated in the FY 92/93 budget message, the fiscal health plan
prescribes that annual debt service payments to be fully funded
from current ad valorem revenues. For the first time in 'nine (9)
years, this goal has been accomplished.
MILLAGE AND AD VALOREM REVENUE SUMMARY
Illustrated below is a comparison of the combined millage rates and
ad valorem revenues for FY 1992/93 and FY 1993/94.
FY 1992/93 FY 1993/94 Increase/(Decrease)
Rate Tax Levy Rate Tax Levy Rate Tax Levy
General
Operating 9.302 $35,812,374 8.238 $36,173,626 (1.064) $361,252
Debt Service 2.545 9.798,161 2.311 10,148,977 (0.234) 350.816
TOTAL 11.847 $45,610,535 10.549 $46,322,603 (1.298) $712,068
If the recommended millage rates are tentatively adopted, the
combined tax rate will decrease by 1.298 mills (10.9 percent) from
the prior year. The discretionary operating millage will decrease
by 1.064 mills (11.4 percent) ; and debt service millage will
decrease by 0.234 mills (9.2 percent)
The illustration shown below outlines the impact of the millage
rate on the owner of a home valued at $250, 000 in 1992 assuming
that there has been no appreciation in value:
1992 1993 INC/(DEC)
Value of Average Home $250,000 $250,000 .$ -0-
Less: Homestead Exemption 25,000 25,000 -0-
Net Taxable Value $225,000 $225,000 $ -0-
TAXES LEVIED
General Operating $2,092.95 $1,853.55 $(239.40)
Debt Service 572.63 519.98 (52.65)
Total Taxes $2,665.58 $2.373.53 $(292.05)
Using the assumption above, the actual dollars paid to the City of
Miami Beach would decrease by 11 percent or $292.05.
136
•
Operating and Debt Service Millage
September 14, 1993
Page - 4 -
Using another example, if the value of the home increased by 5.2
percent, (the average value increase of all single family
residential properties) the ad valorem tax levy would also decrease
by $154.92 or $12.91 per month.
1992 1993 INC/(DEC)
Value of Average Home $250,000 $263,000 $13,000
Less: Homestead Exemption 25,000 25,000 -0-
Net Taxable Value $225,000 $238,000 $13,000
TAXES LEVIED
General Operating $2,092.95 $1,960.64 $(132.31)
Debt Service 572.63 550.02 (22.61)
Total Taxes $2,665.58 $2,510.66 $(154.92)
MULTIPLE. TAXING AUTHORITIES
City of Miami Beach property owners also pay property taxes to Dade
County, the School Board, the South Florida Water Management
District, and the Florida Inland Navigation District. In FY 92/93,
the Miami Beach portion of the total tax bill was 37.6 percent; the
recommended millage rates for FY 93/94 will reduce Miami Beach's
portion of the tax bill to 34.7 percent assuming that proposed
millage rates remain in effect after budget hearings in other
jurisdictions. The table below illustrates the millage rates for
other taxing authorities that affect Miami Beach property owners.
Adopted Proposed Inc/(Dec) % % of
Taxing District FY 92/93 FY 93/94 Change Total
Miami Beach 34.7
General Operating 9.302 8.238 -1.064 -11.4
Debt Service 2.545 2.311 -0.234 -9.2
Dade County 30.4
Countywide Operating 7.305 7.305 0.000 0.0
Library 0.351 0.351 0.000 0.0
Fire Service' 2.374 2.374 0.000 0.0
Debt Service 1.139 0.830 -0.309 -27.1
MDCC2 0.750 0.750 0.000 0.0
School Board 32.7
General Operating 9.023 9.319 0.296 3.3
Debt Service 0.505 0.604 0.099 19.6
Water Management 0.547 0.597 0.050 9.1 2.0
Fl Inland Navigation 0.055 . 0.055 0.000 0.0 0.2
31.522 30.360 -1.162 -3.7 100.0
Note 1: NOT INCLUDED IN TOTAL. This tax is not charged to cities providing their own
Fire services; e.g. Miami Beach, Miami, Hialeah, Coral Gables.
Note 2: Final year of special voted tax for Miami Dade Community College.
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