Resolution 2024-33220 RESOLUTION NO. 2024-33220
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, SETTING 1) THE PROPOSED OPERATING
MILLAGE RATE; 2) THE REQUIRED DEBT SERVICE MILLAGE RATE; 3) THE
CALCULATED "ROLLED-BACK" RATE; AND, 4) THE DATE, TIME, AND
PLACE OF THE FIRST PUBLIC HEARING TO CONSIDER THE MILLAGE
RATES AND BUDGETS FOR FISCAL YEAR 2025; AND, FURTHER,
AUTHORIZING THE CITY MANAGER TO TRANSMIT THIS INFORMATION TO
THE MIAMI-DADE COUNTY PROPERTY APPRAISER IN THE FORM
REQUIRED BY SECTION 200.065, FLORIDA STATUTES.
WHEREAS, Section 200.065, Florida Statutes, specifies the method by which
municipalities set the millage rate and adopt an annual budget; and
WHEREAS, development of the Fiscal Year (FY) 2025 budget began in December 2023
and has included numerous discussions and meetings with the Mayor and City Commission to
review priorities, economic projections, and their impacts on the overall budget, as well as
projected revenues and expenditures; and
WHEREAS, over the last several years, the City of Miami Beach has adopted budgets
that have provided enhanced levels of services that address the needs and priorities identified by
the community; and
WHEREAS, the 2024 Certified Taxable Values received from the Miami-Dade County
Property Appraiser on July 1, 2024 reflect an overall increase of 9.4% in taxable property values
citywide from the 2023 Certified Taxable Values, a 8.4% increase in taxable property values within
the City Center Redevelopment Area, a 6.6% increase in taxable property values within the North
Beach Community Redevelopment Area, and a 9.6% increase in taxable property values outside
of the City Center and North Beach Community Redevelopment Areas, which directly impacts
General Fund property tax revenues; and
WHEREAS, based on the 2024 Certified Taxable Values, it is proposed that the City's
Total General Operating millage rate for FY 2025 be adjusted by 0.0367 mills from the adopted
FY 2024 millage rate of 5.8155 mills to 5.8522 mills, while the proposed voted debt service millage
be decreased by 0.0367 mills from the adopted FY 2024 rate of 0.3326 mills to 0.2959 mills,
based on the overall increase of 9.4% in taxable property values citywide and the recommended
realignment of the reduction in the required voted debt service millage rate to the Capital Renewal
and Replacement(CRR) component of the City's Total General Operating millage rate; and
WHEREAS, the City's Total General Operating millage rate proposed for FY 2025 of
5.8522 mills is comprised of a General millage that funds operating costs in the General Fund, a
Capital Pay-As-You-Go (PayGo) millage that funds General Fund capital projects, and a Capital
Renewal and Replacement(CRR)millage that provides a dedicated source of funding for renewal
and replacement projects that extend the useful life of General Fund capital assets; and
WHEREAS, the City's proposed voted debt service millage rate for FY 2025 of 0.2959
mills, which is a decrease of 0.0367 mills from the adopted FY 2024 millage rate of 0.3326 mills,
based on the 2024 Certified Taxable Values is necessary to fund General Obligation (G.O.) debt
service expenditures totaling approximately $16.3 million in FY 2025 for the first tranche (Series
2019) of the 2018 G.O. Bonds that were approved by the voters on November 6, 2018, as well
as the first tranche(Series 2023A&B)of the 2022 Arts and Culture G.O. Bonds that were approved
by the voters on November 8, 2022; and
WHEREAS, the January 1, 2023 citywide tax roll decreased by approximately$0.4 billion
from the certified July 1, 2023 valuation of$51.6 billion to the final July 1, 2024 valuation of$51.2
billion due to appeals and adjustments, which is part of the reason the FY 2025 "rolled-back" rate
is 5.3395, or 0.4760 mills lower than the adopted FY 2024 Total General Operating millage rate
of 5.8155 mills; and
WHEREAS, the City of Miami Beach is required to notify the Miami-Dade County Property
Appraiser of the proposed millage rates, the "rolled-back" rate, and the date, time, and place of
the first public hearing within 35 days of receipt of the 2024 Certified Taxable Values received on
July 1, 2024.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,that the following recommendations
of the Administration be and are hereby ratified for transmittal to the Miami-Dade County Property
Appraiser, as specified in Section 200.065, Florida Statutes:
1) Proposed Millage Rates for FY 2025:
General Millage 5.6636 mills
Capital Renewal & Replacement Millage 0.0866 mills
Pay-As-You-Go (PayGo) Millage 0.1020 mills
Total General Operating Millage 5.8522 mills
Voted Debt Service Millage 0.2959 mills
Total Combined Millage 6.1481 mills (same as last year)
2) "Rolled-Back" Rate 5.3395 mills
3) The first public hearing to consider the proposed millage rates and budgets for FY
2025 shall be held on Monday, September 16, 2024, at 5:01 P.M., in the City
Commission Chambers at 1700 Convention Center Drive, 3rd Floor, Miami Beach,
Florida 33139.
PASSED and ADOPTED, this c2V day of Jtly
, 2024.
ATTEST:
JUL 2 5 2024 Steven Meiner, Mayor
Rafael E. Granado, City Clerk
APPROVED AS TO
FORM &LANGUAGE
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City Attorney Date
2
Resolutions - R7 E
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Rickelle Williams, Interim City Manager
DATE: July 24, 2024
TITLE: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, SETTING 1) THE PROPOSED OPERATING MILLAGE
RATE;2)THE REQUIRED DEBT SERVICE MILLAGE RATE;3)THE CALCULATED
"ROLLED-BACK" RATE; AND, 4) THE DATE, TIME, AND PLACE OF THE FIRST
PUBLIC HEARING TO CONSIDER THE MILLAGE RATES AND BUDGETS FOR
FISCAL YEAR 2025; AND, FURTHER, AUTHORIZING THE CITY MANAGER TO
TRANSMIT THIS INFORMATION TO THE MIAMI-DADE COUNTY PROPERTY
APPRAISER IN THE FORM REQUIRED BY SECTION 200.065, FLORIDA
STATUTES.
RECOMMENDATION
See attached memorandum.
BACKGROUND/HISTORY
ANALYSIS
FISCAL IMPACT STATEMENT
See attached memorandum. •
Does this Ordinance require a Business Impact Estimate?
(FOR ORDINANCES ONLY)
The Business Impact Estimate (BIE)was published on . See BIE at:
https://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/
FINANCIAL INFORMATION
CONCLUSION
Applicable Area
Page 1363 of 1750
Citywide
Is this a "Residents Right to Know" item, Is this item related to a G.O. Bond
pursuant to City Code Section 2-17? Prolect?
Yes No
Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481
includes a principal engaged in lobbying? No
If so, specify the name of lobbyist(s) and principal(s):
Department
Management and Budget
Sponsor(s)
Co-sponsor(sl
Page 1364 of 1750
MIAMI BEACH
City of Miami Beach,1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Honorable Mayor Steven Meiner and Members of the City Commission
FROM: Rickelle Williams, Interim City Manager
DATE: July 24, 2024
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, SETTING 1)THE PROPOSED OPERATING MILLAGE RATE; 2)
THE REQUIRED DEBT SERVICE MILLAGE RATE; 3) THE CALCULATED
"ROLLED-BACK" RATE; AND, 4) THE DATE, TIME, AND PLACE OF THE FIRST
PUBLIC HEARING TO CONSIDER THE MILLAGE RATES AND BUDGETS FOR
FISCAL YEAR 2025; AND, FURTHER, AUTHORIZING THE CITY MANAGER TO
TRANSMIT. THIS INFORMATION TO THE MIAMI-DADE COUNTY PROPERTY
APPRAISER IN THE FORM REQUIRED BY SECTION 200.065, FLORIDA
STATUTES
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) Proposed Millage Rates for Fiscal Year (FY)2025:
General Millage 5.6636 mills
Capital Renewal & Replacement Millage 0.0866 mills
Pay-As-You-Go (PayGo) Millage 0.1020 mills
Total General Operating Millage 5.8522 mills
Voted Debt Service Millage 0.2959 mills
Total Combined Millage 6.1481 mills (same as last year)
2) "Rolled-Back" Rate (Truth-in-Millage) 5.3395 mills
3) The first public hearing to consider the proposed millage rates and budgets for FY 2025
shall be held on Monday, September 16, 2024, at 5:01 p.m., in the City Commission
Chambers at 1700 Convention Center Drive, 3rd Floor, Miami Beach, Florida 33139.
Page 1365 of 1750
FY 2025 Proposed Millage Rate
July 24, 2024
Page 2
PROPERTY VALUES
On July 1,2024,the City received the 2024 Certified Taxable Values from the Miami-Dade County
Property Appraiser. As summarized below, the City's overall taxable property values increased
approximately$4.8 billion, or 9.4%, from the 2023 Certified Taxable Values of$51.6 billion to the
2024 Certified Taxable Values of$56.4 billion, which includes a $4.5 billion, or 8.8%, increase in
the City's existing values and a$0.3 billion increase in new construction values. Within the overall
increase, however, property values within the City Center Redevelopment Area and the North
Beach Community Redevelopment Area increased by 8.4% and 6.6%, respectively, compared to
the previous year.
July 2023 July 2024 $
Certified Certified Change Change
Properly Values:
Existing Values $51,560,772,230 $56,099,794,992 $4,539,022,762 8.8%
New Construction - 297,152,107 297,152,107 100.0%
Total $51,560,772,230 $56,396,947,099 $4,836,174,869 9.4%
City Center Redevelopment Area $6,188,026,922 $6,709,447,439 $521,420,517 8.4%
North Beach Community Redevelopment Area 1,730,558,116 1,844,424,002 113,865,886 6.6%
Total(Net of RDA&CRA) $43,642,187,192 $47,843,075,658 $4,200,888,466 9.6%
VALUE OF ONE MILL OF TAXABLE VALUE
The first building block in developing a municipal budget is the establishment of the value of one
mill of taxation, where a mill is defined as $1.00 of ad valorem tax for every $1,000 of taxable
property value. For the City, the value of each mill for the FY 2025 budget is determined by the
2024 Certified Taxable Values that is set at approximately$56.4 million per mill levied. Per Section
200.065, Florida Statutes, a discount of up to 5% may be applied for early payment discounts,
delinquencies,etc.Therefore,the value of one mill citywide at 95%is approximately$53.6 million.
PROPOSED MILLAGE RATE
There are two (2) main components to the City's Total Combined millage rate, which are the
General Operating millage rate and the voted debt service millage rate. The General Operating
millage rate, which is comprised of a General, Capital Renewal and Replacement (CRR), and
Capital Pay-As-You-Go(PayGo)millage,funds General Fund operating and capital expenditures,
while the voted debt service millage rate funds the annual debt service for outstanding General
Obligation (G.O.)bonds.
The General Operating millage rate proposed for FY 2025 of 5.8522 mills provides funding to
offset increases in personnel costs, such as the City's annual required pension contributions, a
five 5% step increase for all Fraternal Order of Police (FOP)and International Association of Fire
Fighters (IAFF)positions and a 0-3% performance-based merit increase for all other positions, an
increase in the City's health insurance premiums for active employees and retirees, as well as
increases in other General Fund operating expenditures and dedicated funding for General Fund
capital projects.
Page 1366 of 1750
FY 2025 Proposed Millage Rate
July 24, 2024
Page 3
Unfunded Capital Needs
As presented at the Finance and Economic Resiliency Committee (FERC) Budget Briefings on
June 21, 2024 and July 12, 2024, the City's FY 2025-2029 Capital Improvement Plan (CIP)
reflected approximately$1.2 billion of unfunded capital project needs over the next five (5)years.
As a result, and in an effort to meet the City Commission's goal of funding 5% of the annual
General Fund operating budget for capital needs in accordance with Resolution No. 2006-26341,
the Administration recommended the following, which was approved by the FERC at the two (2)
FY 2025 Budget Briefings:
1. Dedicated CRR Milla m Adjustment
Realign the reduction in the required voted debt service millage rate in FY 2025 of 0.0285
mills based on the 2024 Certified Taxable Values as of July 1, 2024 to the dedicated CRR
millage rate.This realignment would result in an estimated additional increase in dedicated
CRR funding of approximately $1.4 million in FY 2025.
2. General Fund Interest Income for Capital Projects
Allocate 25%, or approximately$2.0 million, of the total projected FY 2025 interest income
in the General Fund for one-time capital expenditures. Using General Fund interest
income for one-time expenditures is a prudent financial strategy for local governments,
particularly given the volatility of interest rates. Interest rates can fluctuate significantly due
to economic conditions, monetary policy, and market forces. Relying on interest income
for recurring expenditures is risky, as a decline in rates could lead to a shortfall in expected
revenues and cause an unexpected deficit. By using interest income for one-time
expenditures, the City would avoid creating budget gaps, if interest income decreases.
In addition, based on the finalization of the City's Annual Comprehensive Financial Report(ACFR)
for the fiscal year ending September 30, 2023 (FY 2023), approximately$0.4 million in prior year
fund balance in the General Obligation (G.O.)Debt Service Fund is available for appropriation.At
the July 12, 2024 FERC Budget Briefing, the Administration recommended that the available
funding be appropriated in FY 2025 which reduced the voted debt service millage for FY 2025
further by 0.0082 mills from 0.3041 mills to 0.2959 mills and realign the additional decrease in the
voted debt service millage to the dedicated CRR millage. This resulted in an estimated additional
increase in dedicated CRR funding of approximately $0.4 million, which was approved by the
FERC at the July 12, 2024 FERC Budget Briefing.
The voted debt service millage rate provides dedicated funding for the annual debt service
associated with the City's outstanding G.O. Bonds. For FY 2025, this represents the annual debt
service for the first tranche(Series 2019)of the G.O. Bonds approved by the voters on November
6, 2018,and the annual debt service for the first tranche(Series 2023 A&B)of the Arts and Culture
G.O. Bonds approved by the voters on November 8, 2022. Based on the 2024 Certified Taxable
Property Values, the debt service payments totaling approximately $16.3 million in FY 2025
require the levy of a voted debt service millage rate of 0.2959 mills for FY 2025, which is 0.0367
mills less than the adopted FY 2024 voted debt service millage rate of 0.3326 mills.
The Total Combined millage rate for FY 2025 would remain flat at 6.1481 mills, as
summarized in the table below, if the recommendations above are approved.
Page 1367 of 1750
FY 2025 Proposed Millage Rate
July 24, 2024
Page 4
These recommendations would move the budget closer to the City Commission's goal of funding
5%of the annual General Fund operating budget,which is approximately$21.9 million,for capital
needs, from approximately $11.3 million, or 2.6%, to $15.1 million, or 3.4%,of the FY 2025
General Fund budget. With these additional capital dollars, the Administration recommends
funding the most critical unfunded capital projects to extend the useful life of the City's facilities.
FY 2024 FY 2025 Increase/
Adopted Proposed (Decrease)
General 5.6636 5.6636 0.0000
Capital Renewal&Replacement(CRR) 0.0499 0.0866 0.0367
Capital Pay-As-You-Go(PayGo) 0.1020 0.1020 0.0000
Total General Operating Millage 5.8155 5.8522 0.0367
Voted Debt Service 0.3326 0.2959 (0.0367)
Total Combined Millage 6.1481 6.1481 0.0000
IMPACT OF PROPOSED 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 last year's taxable property values from the Miami-Dade County Property Appraiser as
of July 1, 2023, the median homesteaded property value in the City was $265,595 while the
average homesteaded property value was $756,191. For an existing homesteaded property in
the City that was not sold and/or did not have any improvements or additions completed in the
last year, the impact of the City's Total Combined millage rate of 6.1481 mills proposed for FY
2025 would be an increase of approximately$49 for the median homesteaded property,while the
impact for the average homesteaded property would be $138 pursuant to the SOH cap.
Page 1368 of 1750
FY 2025 Proposed Millage Rate
July 24, 2024
Page 5
Homesteaded Properties
FY 2024 FY 2025
Median** Average** Median Average
Preliminary Taxable Value" $265,595 $756,191 $273,583 $778,877
City of Miami Beach:
Operating $1,545 $4,398 $1,601 $4,558
Voted Debt 88 252 81 230
Total Miami Beach $1,633 $4,650 $1,682 $4,788
$Change in Taxes:
Operating $56 $160
•
Voted Debt (7) (22)
Total Miami Beach $49 $138
"Source:Miami-Dade County Properly Appraiser's-2023 average-median-homestead-residential-
values files
Historical Perspective
The table below outlines the City's historical millage rate trend. For FY 2025, the City's Total
Combined millaqe rate is proposed to remain flat at 6.1481 mills, which is the same rate adopted
for FY 2024.
Millage Rate History
6.6000 6.5025
6.4539
6.3477
6.4000
`t. • ,Y "r= 6.1163 6.1481 6.1481
0.1083
6.2000 6.0515 6.0515 6.0515
0.10 oaa83 •��r'�'•: . .. 6.0237 6.0221 .. :
0.1083 5.9123
6.0000 5.8888 5.8888 5.8888 : _ 'r'.::
5.8000 0.1083 .:.,• # O:il0 ,M1� ` .
0.1083 '-' .`•-' -' `'•'" 0990 0.1519 0.1519 0.1886
0.1083 0.0990 0.0990 0.0990
5.6000 s 1 072
6.0572
5.4000
5.6659 5.6009 5.6298 5.6298 5.6636 5.6636
5.2000
5.0000
FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020* 2021 2022 2023 2024** 2025
■Operating Millage Capital Millage(PayGo&CRR) Voted Debt Service
*Increase in FY 2020 millage attributed to issuance of Tranche 1(Series 2019)of General Obligation(G.O.)Bonds approved
by the voters on November 6,2018
"Increase in FY 2024 millage attributed to issuance of Tranche 1(Series 2023A&B)of Arts and Culture(G.O.)Bonds
approved by the voters on November 8,2022
• Page 1369 of 1750
FY 2025 Proposed Millage Rate
July 24, 2024
Page 6
TRUTH-IN-MILLAGE PROCESS
Florida Statute 200.065, entitled "Method of Fixing Millage," establishes specific guidelines that
must be used by all local government entities in setting millage its millage (property tax) rates.
Under the Statute, the City is required, within 35 days of receipt of the "Certification of Taxable
Value" (received July 1, 2024), to advise the Miami-Dade County Property Appraiser of the Total
General Operating millage rate proposed, 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
2025. The required voted debt service millage rate must also be set at the same time as the Total
General Operating millage rate.
Maximum Millage Determination
The FY 2025 Total General Operating millage rate is proposed at 5.8522 mills. Based on the 2024
Certified Taxable Values received from the Miami-Dade County Property Appraiser on July 1,
2024, the proposed levy of 5.8522 mills, which includes the recommended realignment of the
reduction in the voted debt service millage to the dedicated CRR millage, would generate
approximately $278.2 million in General Fund property tax revenues, which is an increase of
approximately $25.3 million over the budgeted FY 2024 General Fund property tax revenues of
$252.9 million (excludes the City Center Redevelopment Area and North Beach Community
Redevelopment Area).
Adoption of the Total General Operating millage rate of 5.8522 mills proposed for FY 2025,
therefore, requires a two-thirds approval (5 of 7 votes)by the Mayor and City Commission per the
State of Florida's Truth-in-Millaqe (TRIM) requirements.
By August 4, 2024, taxing authorities are required to certify the proposed millage rates to the
Miami-Dade County Property Appraiser. The millage rates proposed will be included in the TRIM
notices that will be mailed by the Property Appraiser by August 24, 2024. The purpose of the
TRIM notice is to notify property owners of how much their property taxes could potentially
increase or decrease, and which governmental entity is responsible for the taxes levied.
After setting the proposed millage rates for FY 2025,the Mayor and City Commission may, at any
time prior to final adoption, lower the proposed millage rates throughout the remainder of the
budget development process until the final millage rates are adopted by the Mayor and City
Commission at the second public hearing scheduled to be held on Wednesday, September 25,
2024, at 5:01 p.m.
First Public Hearing
The first public hearing on the proposed operating millage rate and budget for FY 2025 must be
held no later than 80 days, or earlier than 65 days, from-the start of the TRIM calendar(July 1st).
Other requirements are:
1. The public hearing cannot be scheduled on a Sunday or on those days utilized by Miami-
Dade County or the Miami-Dade County School Board for their public hearings
2. The public hearing must be held after 5:00 P.M., if on a day other than Saturday
3. The principal taxing authority (City of Miami Beach) must adopt its tentative millage rate
prior to adopting its tentative annual budget
• Page 1370 of 1750
FY 2025 Proposed Millage Rate
July 24, 2024
Page 7
Based on these requirements, the first public hearing must be held between September 3, 2024
and September 18, 2024. The following dates are unavailable for the following reasons:
September 5th Miami-Dade County 1st Public Hearing
September 8th and 15th Sundays
September 11th Miami-Dade County School Board 2nd Public Hearing
Of the remaining days available, it is recommended that the first public hearing be held on
Monday, September 16, 2024, at 5:01 P.M., in the City Commission Chambers at 1700
Convention Center Drive, 3rd Floor, Miami Beach, Florida 33139.
Second Public Hearing
The second public hearing to adopt the final millage rate and budget for FY 2025 must be held
no later than 100 days, or earlier than 97 days, from the start of the TRIM calendar (July 1st). In
addition, it must be advertised no later than 15 days after the first public hearing and must be held
two (2)to five(5)days after the advertisement appears in the newspaper.
For this reason,the second public hearing is recommended to be held on Wednesday, September
25, 2024, at 5:01 p.m., in the City Commission Chambers at 1700 Convention Center Drive, 3rd
Floor, Miami Beach, Florida 33139.
CONCLUSION
The Administration recommends that the Mayor and City Commission adopt the attached
Resolution authorizing the City Manager to transmit the proposed operating millage rate, the
required debt service millage, 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 2025 to the
Miami-Dade County Property Appraiser.
RW/JDG/TOS/RA
Page 1371 of 1750