Resolution 2024-33293 RESOLUTION NO. 2024-33293
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA,ADOPTING: 1)THE FINAL AD VALOREM MILLAGE
OF 5.8522 MILLS FOR FISCAL YEAR 2025 FOR GENERAL OPERATING
PURPOSES,WHICH IS NINE AND SIX TENTHS PERCENT(9.6%) MORE THAN
THE "ROLLED-BACK" RATE OF 5.3395 MILLS; AND 2) THE DEBT SERVICE
MILLAGE RATE OF 0.2959 MILLS.
WHEREAS, on July 24, 2024, the Mayor and City`Commission adopted Resolution No.
2024-33220, which set the proposed Fiscal Year (FY) 2025 general operating millage rate at
5.8522 mills for general operating purposes,which is 0.0367 mills more than the adopted FY 2024
general operating millage rate of 5.8155 mills, and 0.2959 mills for debt service, which is 0.0367
mills less than the adopted FY 2024 debt service millage of 0.3326 mills that is necessary to fund
the required annual debt service for the Series 2019 General Obligation (G.O.) Bonds, as well as
the Series 2023A&B Arts and Culture G.O. Bonds,that were approved by the voters on November
6, 2018 and November 8, 2022, respectively; and
WHEREAS, the general operating millage rate of 5.8522 mills for FY 2025 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 0.0866 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 16, 2024, in accordance with Section
200.065, Florida Statutes, the Mayor and City Commission tentatively adopted the operating
millage rate of 5.8522 mills for general operating purposes, and debt service millage rate of 0.2959
mills, for FY 2025; 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 2025 general operating purposes; and 2)adopt the required
debt service millage rate for FY 2025; 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 2025
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 5.8522 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 nine and six-tenths percent (9.6%) more than
the "Rolled-back" rate of 5.3395 mills.
(b)'For the purpose of providing payment on the principal and interest
portions of outstanding General Obligation (G.O.) Bond Debt and
miscellaneous debt service expenditures, the rate assigned amounts to
0.2959 mills.
PASSED AND ADOPTED this as day of 90 , 2024.
ATTEST:
SEP 2 6 2024
even Meiner, Mayor
Rafael E. Granado, City Clerk
., a
INCORPORATED
APPROVED AS TO
FORM &LANGUAGE
&FOR EXECUTION
ozo.
City Attorney Date
2
. Resolutions - R7 A
MiAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Eric Carpenter, City Manager
DATE: September 25, 2024 5:01 p.m. Second Reading Public Hearing
TITLE: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ADOPTING: 1)THE FINAL AD VALOREM MILLAGE OF
•
5.8522 MILLS FOR FISCAL YEAR 2025 FOR GENERAL OPERATING PURPOSES,
WHICH IS NINE AND SIX TENTHS PERCENT(9.6%)MORE THAN THE"ROLLED-
BACK" RATE OF 5.3395 MILLS; AND 2)THE DEBT SERVICE MILLAGE RATE OF
0.2959 MILLS.
•
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) The Final Adopted 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) •
The first public hearing on the tentative millage rates and budgets for FY 2025 was held on
September 16, 2024. The millage rates reflected herein are those which were tentatively adopted
by the Mayor and City Commission at the first public hearing.
BACKGROUND/HISTORY
•
See information provided below.
ANALYSIS
Florida Statutes, Section 200.065, requires that at the second public hearing on the proposed tax
rate and budget, the Mayor and City Commission proceed in the following specific manner:
Page 5 of 420
1. Adopt a final ad valorem millage rate for FY 2025 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 FY 2025 debt service millage rate.
State statute requires that only the title be read aloud.
2. Adopt a final general operating budget for FY 2025, which includes the budgets for the
General, Enterprise, Internal Service, Special Revenue, and General Obligation (G.O.)
Bond Debt Service Funds, as well as the City's Tax Increment Financing (TIF) portion of
the City Center Redevelopment Area and North Beach Community Redevelopment Area.
This is accomplished by adopting a companion Resolution (see accompanying City
Budget Agenda Item).
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 included 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
Property 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%
MILLAGE RATES
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 bonds.
The General Operating millage rate 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
percent (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 6 of 420
Unfunded Capital Needs
As presented by the Administration at the Finance and Economic Resiliency Committee (FERC)
Budget Briefing on July 12, 2024 and the first public hearing on September 16, 2024, the City's
FY 2025-2029 Capital Improvement Plan (CIP) reflects over $1.0 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 July 12,
2024 Budget Briefing and the Mayor and City Commission at the first public hearing on September
16, 2024:
1. Dedicated CRR Millage 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 resulted in an estimated additional increase in dedicated
CRR funding of approximately$1.4 million in FY 2025.
2. General Fund Interest Income for Capital Proiects
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.
The percentage of General Fund interest income to be allocated for one-time capital
expenditures will be increased by 5% per fiscal year on a recurring basis.
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 G.O. Debt Service Fund was available for appropriation. At the July 12, 2024
FERC Budget Briefing and the first public hearing on September 16, 2024, 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 recommended by the FERC at the July 12, 2024 FERC Budget Briefing and
approved by the Mayor and City Commission at the first public hearing on September 16, 2024.
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 that were 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 that were approved by the voters on November 8, 2022. Based on the
2024 Certified Taxable Values, the debt service payments totaling approximately$16.3 million in
FY 2025 require the levy of a debt service millage rate of 0.2959 mills for FY 2025,which is 0.0367
mills less than the voted debt service millage rate of 0.3326 mills that was adopted for FY 2024.
The final Total Combined millage rate for FY 2025, if adopted, would remain flat at 6.1481
mills, as summarized in the table below.
Page 7 of 420
- -
FY 2024 FY 2025 Increase/ '
Millage Rates • (Decrease)
Adopted Proposed
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 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 taxable value of a homesteaded property. Those increases are limited to 3%, 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 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 for FY 2025 would result in
an increase of approximately $49 for the median homesteaded property value, while the impact
for the average homesteaded property value would be $138 pursuant to the SOH cap.
Homesteaded Properties
FY 2024 FY 2025
Median* Average* Median Average
Preliminary Taxable Value* $265,595 $756,191 $273,563 $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
$Changes in Taxes:
Operating $56 $160
Voted Debt (7) (22)
Total Miami Beach $49 $138
*Source:Miami-Dade County Property Appraiser's—2023 average-median-homestead-residential-values files
Non-Homesteaded Properties
The annual increase in the taxable values of a non-homesteaded property is capped at 10%,
excluding the Miami-Dade County School Board portion. While the average citywide increase in
property values was 9.4%, the value of some individual properties may increase up to, but not
Page 8 of 420
more than 10%, excluding the Miami-Dade County School Board portion of the property tax bill.
However, an individual property owner may see an increase of more than 10% if there is a change
in ownership of a capped property as a result of a reset in the cap. Another factor, if applicable,
would be the value of new construction which can also contribute to a property value increase of
more than 10%.
OVERLAPPING MILLAGE RATES
Property owners in the City of Miami Beach also pay property taxes that are levied by 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 (FIND). For FY 2025, these taxing authorities represent 67.3% of a Miami
Beach property owner's ad valorem tax bill.
The countywide and library millage rates currently proposed by Miami-Dade County for FY 2025
remained flat at 4.5740 mills and 0.2812 mills, respectively, while the debt service millage rate
decreased by 0.0084 mills from 0.4355 to 0.4271 mills. The millage rate for the Miami-Dade
County School Board decreased by 0.0970 mills from 6.6990 to 6.6020 mills.The Children's Trust
millage rate remained flat at 0.5000 mills and the millage rates for the South Florida Water
Management District, Okeechobee Basin, Everglades Project, and Florida Inland Navigational
District, combined, remained flat at 0.2589 mills.
Based on the millage rates currently proposed for FY 2025, the City of Miami Beach portion of
the ad valorem tax bill represents 32.7% of the total ad valorem tax bill. It is important to note that
Miami-Dade County's Total Combined millage rate for FY 2025 of 5.2823 mills is 1.1037 mills, or
17.3%, less than Miami-Dade County's total FY 2007 millage rate of 6.3860 mills, as compared
to the City's Total Combined millage rate of 6.1481 mills for FY 2025 that is 1.5249 mills, or 19.9%,
less than the City's total FY 2007 millage rate of 7.6730 mills. Similarly, the Miami-Dade County
School Board millage for FY 2025 of 6.6020 mills is 1.5030 mills, or 18.5%, less than the FY 2007
millage of 8.1050 mills. These differences are a direct result of the City's ongoing efforts to keep
millage rates as low as possible.
A summary of the millage rate changes by taxing authority is provided in the table below.
Page 9 of 420
OVERLAPPING %of Variance Variance % of
FY 2007 FY 2007 FY 2024 Proposed from from • FY 2025
TAX MILEAGE Total FY 2025 FY 2007 FY 2024 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% 0.0499 0.0866 (0.0954) 0.0367 0.5%
Pay-As-You-Go Capital 0.0000 0.0% 0.1020 0.1020 0.1020 0.0000 0.5%
Operating Millage 7.3740 31.6% 5.8155• 5.8522 (1.5218) 0.0367 31.1%
Voted Debt Service 0.2990 1.3% 0.3326 . 0.2959 (0.0031) (0.0367) 1.6%
Subtotal 7.6730 32.9% 6.1481 6.1481 (1.5249) 0.0000 32.7%
Miami Dade County:
Countywide 5.6150 24.1% 4.5740 4.5740 (1.0410) 0.0000 24.3%
Library 0.4860 2.1% 0.2812 . 0.2812 (0.2048) 0.0000 1.5%
Debt Service 0.2850 1.2% 0.4355 0.4271 0.1421 (0.0084) 2.3%
Subtotal 6.3860 27.4% 5.2907 5.2823 (1.1037) (0.0084) 28.1%.
School Board 8.1050 34.8% 6.6990 6.6020 (1.5030) (0.0970) 35.1%
Children's Trust 0.4223 1.8% 0.5000 0.5000 0.0777 0.0000 2.7%
Other 0.7355 3.2% 0.2589 0.2589 (0.4766) 0.0000 1.4%
Total 23.3218 100.0% 18.8967 18.7913 (4.5305) (0.1054) 100.0%
IMPACT OF COMBINED TAX RATES ON HOMESTEADED PROPERTIES
Based on last year's values from the Miami-Dade County Property Appraiser as of July 1, 2023,
the median homesteaded property value in the City of Miami Beach was $265,595 while the
average homesteaded property value was $756,191. Applying the millage rates for all taxing
authorities to the median and average homesteaded values for an existing homesteaded property
in the City of Miami Beach that was not sold and/or did not have any improvements or additions
completed in the last year results in a combined property tax increase of approximately $122 for
the median and $344 for the average homesteaded property value in the City of Miami Beach.
A homesteaded property with a median value of$273,563 would pay approximately$5,141 for all
taxing authorities combined, while a homesteaded property with an average value of$778,877
would pay approximately $14,635 combined. Of the taxing authorities, the highest component is
the Miami-Dade County School Board at$1,806 for the median value homesteaded property and
$5,142 for the average value homesteaded property in the City of Miami Beach.
The following table provides a summary of the changes in the property taxes levied for an existing
homesteaded property that has not been sold and/or had any improvements or additions
completed in the last year using the millage rates that are currently proposed for FY 2025 by
taxing authority.
Page 10 of 420
Impact on Homesteaded Properties
FY 2024 FY 2025
Median* Average* Median Average
Preliminary Taxable Value* $265,595 $756,191 $273,563 $778,877
City of Miami Beach:
Operating $1,545 $4,398 $1,601 $4,558
Voted Debt 88 252 81 230
Subtotal Miami Beach '$1,633 $4,650 $1,682 $4,788
Miami-Dade County $1,405 $4,001 $1,445 $4,114
School Board 1,779 5,066 1,806 5,142
Other 202 574 208 591
Total Combined $5,019 $14,291 $5,141 $14,635.
$Changes in Taxes:
City of Miami Beach
Operating $56 $160
Voted Debt (7) (22)
. Subtotal Miami Beach $49 $138
Miami-Dade County $40 $113
School Board 27 76
Other 6 17
Total Combined $122 $344
*Source:Miami-Dade County Property Appraiser's—2023 average-median-homestead-residential-values files
As with the City of Miami Beach millage rates, the impacts of the combined millage rates of other
taxing authorities on non-homesteaded properties are based on individual property values.
Historical Perspective
The table below outlines the City's historical millage rate trend. For FY 2025, the City's Total
Combined millage rate is proposed to remain flat at 6.1481 mills, which is the same millage rate
that was adopted for FY 2024.
Page 11 of 420
Millage Rate History
6.6000 6_5025-6:4539
6.3477
6.4000 0 2870-1
0 2884 0 6.1481 6.1481
°2568 6.1163
6.2000 0.1083 t 14 6.0237 6.0221 6:0 6:0 515-6:0515- 515
0.1083 4* 4
0.1083 5 9123 5 8888-5 8888-5.8888� f
6.0000 - 0 2529 0 2959
0!2295' 0 2 3 0 3227 0t2889 0.23606 y .
5.8000 -0.1083 *- 0 2031, 9.1795 0!1664 0:1600 - t "`9 I`' '
0.1083 2 -0.0990 0.1519 0.1519 0.1886
10.1083 0.0990 0.0990 10.0990
5.6000 6.1072
6.0572 5.9826
5.4000 -5.7551 5.6859 5.6009 5.6989 5.6298 5.6298 5.6298 5.6636 5.6636 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 0 Capital Millage(PayGo&CRR) 0 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
Eby the voters on November 8,2022
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 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 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
After setting the proposed millage rates, the Mayor and City Commission may, at any time prior
to final adoption, lower the millage rates. However, increasing the millage rates 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 millage rates, as well as those of other taxing
authorities proposed, are reflected in the Truth-in-Millage (TRIM) notice that was sent by the
Miami Dade County Property Appraiser to each property owner in the City of Miami Beach by
August 24, 2024.
For FY 2025,the Total General Operating millage rate is 5.8522 mills. Based on the 2024 Certified
Taxable Values received from the Miami-Dade County Property Appraiser as of July 1, 2024, the
levy 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 (this excludes the City Center Redevelopment Area and North
Beach Community Redevelopment Area).
Adoption of the Total General Operating millage rate of 5.8522 mills 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-Millage (TRIM) requirements.
Page 12 of 420
FISCAL IMPACT STATEMENT
See information provided above.
Does this Ordinance require a Business Impact Estimate?
(FOR ORDINANCES ONLY)
If applicable, the Business Impact Estimate (BIE)was published on:
See BIE at: https://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/
FINANCIAL INFORMATION
See information provided above.
CONCLUSION
The Administration recommends that the Mayor and City Commission adopt the Resolution,which
sets the final Total General Operating and voted debt service millage rates at 5.8522 mills and
0.2959 mills, respectively, for FY 2025.
EC/JDG/TOS/RA
Applicable Area
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? Project?
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?
If so, specify the name of lobbyist(s) and principal(s):
Department
Management and Budget
Sponsor(s)
Co-sponsor(s)
Condensed Title
5:01 p.m. 2nd Rdg, Adopt Final Ad Valorem Millage for General Operating Purposes. OMB
Page 13 of 420