99-23270 RESO
RESOLUTION NO.
99-23270
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, SETTING THE
PROPOSED MILLAGE RATES FOR FISCAL YEAR (FY)
1999/00, THE CALCULATED ROLLED-BACK RATE, AND
THE DATE, TIME, AND PLACE OF THE FIRST PUBLIC
HEARING; 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, has specified the method by which
municipalities may fix the millage rate and adopt an annual budget; and
WHEREAS, the City of Miami Beach is required to advise the Miami-Dade County Property
Appraiser of the Proposed Millage Rate, the Rolled-Back Rate, and the date, time, and place of the
first public hearing.
NOW, THEREFORE BE IT DUL Y 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:
I) Proposed Millage Rates for FY 1999/00
General Operating
Debt Service
7.499 mills
1.199 mills
8.698 mills
2)
Rolled-Back Rate
7.112 mills
3) The first public hearing on the proposed millage rate and the tentative budget for FY 1999/00
shall be held on Tuesday, September 14, 1999 at 5:01 P.M., in the City Commission
Chambers, City Hall, 1700 Convention Center Drive, Miami Beach, Florida.
PASSED and ADOPTED, this 21st day of July, 1999.
ATTEST:
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
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MAYOR
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CITY CLERK
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Ciiy ~rM4!' IJUl\I '
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http:\\ci.miami-beach.f1.us
COMMISSION MEMORANDUM NO. s<i S -CfJ
TO:
Mayor Neisen O. Kasdin and
Members of the City Commission
Sergio Rodriguez fl tt ( /
City Manager ~
DATE: July 21, 1999
FROM:
SUBJECT:
A RESOLUTION 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 (FY) 1999/00;
FURTHER AUTHORIZING THE CITY MANAGER TO TRANSMIT TmS
INFORMATION TO THE MIAMI-DADE COUNTY PROPERTY
APPRAISER IN THE FORM REQUIRED BY SECTION 200.065, FLORIDA
STATUTES.
SUMMARY
The Administration is recommending the City's operating millage rate at the current rate of 7.499,
and has calculated a decrease of 0.285 in the current debt service millage rate of 1.484 to 1.199. A
decrease in the overall millage (0.285) will cause a net decrease of $22.04 in the amount of taxes that
the average residential homeowner will pay to the City in the coming fiscal year. Because the
County and the School Board have announced overall decreases in their property tax rate, the
combined impact on the average homeowner in Miami Beach will be a decrease of $50.02.
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 FY 1999/00:
General Operating
Debt Service
7.499 mills
1.199 mills
8.698 mills
(7.499 last year)
(1.484 last year)
(8.983 last year)
2) Rolled Back Rate (Truth in Millage)
7.112 mills
3) The first public hearing to consider the proposed millage rates and tentative budgets for FY
1999/00 shall be at 5:01 p.m., Tuesday, September 14, 1999 in the City Commission
Chambers, City Hall, 1700 Convention Center Drive, Miami Beach, Florida.
AGENDA ITEM
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1-2\-CJ.=L
451
DATE
FY1999/00 Proposed Millage Rate
July 21, 1999
Page - 2 -
DECISION-MAKING PROCESS
The budget development process has included participation from within and from outside City Hall.
A budget briefing was held on June 10th, to inform the Commission and the citizens of revenue
projections and department expenditure requests for FY 1999/00.
The Budget Advisory Committee (BAC) hosted a citizen forum on June 29, 1999 to gain additional
citizen input regarding the proposed budget. The Administration conducted a Commission
workshop on July 8, 1999, for the purpose of informing both the Commission and the citizens about
the status of the proposed budget. At that workshop, the Administration provided the status of the
budget process to date, and budget balancing alternatives, including city-wide expenditure reductions
and current and future revenue enhancement opportunities.
Maintaining the basic service level into FY 1999/00 will translate into a total operating budget of
$119,537,900, which is $8,564,562 or 7.7% greater than the estimated current year-end operating
expenditures of$11O,973,338.
This proposed budget includes a return of $2,000,000 of resort taxes to the City from the Miami
Beach Visitors and Convention Authority to be used to assist the City in funding its tourism related
costs.
This proposed budget includes new or increased services in the amount of $1,740,000. These
enhancements are in the areas of parks and streetscape maintenance, plan review and permitting
process, neighborhood planning, two additional lifeguard locations, enhanced security on Lincoln
Road.
STATUTORY REQUIREMENTS
FS200.065, 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 statute, the City
is required, within 35 days of receipt of the "Certification of Taxable Value" (received July 1, 1999),
to advise the Miami-Dade County Property Appraiser of the proposed millage rates, the calculated
rolled- back rate and the date, time, and place of the first public hearing to consider the proposed
millage rates and tentative budgets for FY 1999/00. The required Debt Service millage rate must
also be set at the same time.
After setting the proposed operating millage rate, the Commission may, at any time prior to
the fmal adoption, lower the rates by adjusting priorities. Increasing the millage rate may only
be accomplished by an expensive mailing and advertising process to every property owner on
Miami Beach.
452
FY1999/00 Proposed Millage Rate
July 21, 1999
Page - 3 -
ANALYSIS OF PROPERTY VALVES IN MIAMI BEACH
On July 1, 1999, the City received the "1999 Certification of Taxable Value" from the Property
Appraiser's Office stating that the taxable value for the City of Miami Beach is $7,659,818,594,
including $417,439,229 in new construction, which is the largest increase this City has experienced
in its recent history.
The preliminary 1999 value represents an increase of 11.5 percent over 1998's final value of
$6,868,821,231. Alternately, the increase is 10 percent over 1998's preliminary value of
$6,964,723,252. The difference of $95,902,021 between 1998's preliminary and final values
represents the equalization loss of 1.4 percent due to appeals, etc.
The comparative assessed values for the Miami Beach Redevelopment Agency South Pointe
redevelopment district increased by $48,845,898 or 9.3 percent from $524,998,352 to $573,844,250;
however, values in the City Center redevelopment district increased by $285,492,126 or 45.6 percent
from $625,643,161 to $911,135,287.
DETERMINING THE OPERATING MILLAGE LEVY
The first building block in developing a municipal budget is the establishment of the value of one
mill of taxation, wherein the mill is defined as $1.00 of ad valorem tax for each $1,000 of property
value. For the City of Miami Beach, this value is determined by the 1999 Certification of Taxable
Value and has been set at $7,659,819. Florida Statutes permit a discount of up to five percent for
early payment discounts, delinquencies, etc. For the City of Miami Beach, the discount utilized is
3.5 percent. Therefore, the 96.5 percent value of the mill is $7,391,725.
Preliminary budget estimates reveal that the current millage rate of 7.499 mills will be sufficient to
fund a current, basic service level as it presently exists, and selected service enhancements, into the
next year.
The proposed millage rate of 7.499 mills will generate ad-valorem tax revenues of $55,430,546 (of
which $8,069,911 will be transferred to the Redevelopment Agencies) for a net revenue total of
$47,360,635 in the General Fund. This amount is $5,724,084 more than the prior year levy of
$49,706,462, reflecting a 11.5 % increase.
DETERMINING THE DEBT -SERVICE MILLAGE LEVY
The debt-service payment for FY 1999/00 is $ 8,862,678 and requires a tax rate of 1.199 mills. This
rate is 0.285 mills, or nineteen and two tenths percent (19.2%) less than the FY 1998/99 rate of 1.484
mills.
453
FY1999/00 Proposed Millage Rate
July 21, 1999
Page - 4 -
COMBINING THE OPERATING AND DEBT -SERVICE MILLAGE LEVIES
Illustrated below is a comparison of the combined millage rates and ad valorem revenues to the City
of Miami Beach for FY 1998/99 (final) and FY 1999/00 (preliminary).
Tax Rate Tax Levy
FY 98/99 FY 99/00 Inc/(Dec) FY 98/99 FY 99/00 Inc/(Dec)
-
General Operating 7.499 7.499 0.000 $49,706,462 $55,430,546 $5,724,084
Debt Service 1.484 .!.J..22 <0.285) 9.836.563 8.862.678 (973.885)
TOTAL 8.983 8.698 (0.285) $59,543,025 $64,293,224 $4,750,199
If these recommended millage rates are tentatively adopted, then the combined tax rate will decrease
by 0.285 mills, or 3.3% less than the current year. The operating millage will remain constant, and
debt-service millage will decrease by 0.285 mills, or nineteen and two tenths percent (19.2%).
COMBINING JURISDICTIONAL OPERATING AND DEBT-SERVICE MILLAGE LEVIES
City of Miami Beach property owners must also pay property taxes to Miami- Dade County, the
Miami-Dade County 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 1999/00 will decrease the Miami Beach
portion of the tax bill to 33.1 percent based on tax rates announced by other jurisdictions.
Revised FY 1999/00 tax rates may be considered by Miami-Dade County on September, 1999. The
countywide tax rate will decrease by 0.052 mills from 6.023 to 5.971 mills; the County's debt service
will decrease by 0.021 mills from 0.837 to 0.816 mills. An increase for the Library District has been
announced of 0.052 mills from 0.334 to 0.386 mills. While it is not possible to determine the exact
amount returned in additional services. it should be noted that Miami-Dade County returned
$4.568.509 during FY 1998/99 in tax-increment funds for the Redevelopment Agency and its two-
tax increment districts.
The Miami-Dade County School Board is scheduled to discuss its proposed tax rate on July 26th,
but has tentatively announced a decrease of 0.461 mills from 10.160 to 9.699 mills. It must be noted
that this value is subject to change after the State of Florida reviews the counties' tax rolls and
determines the "local required effort" by Miami-Dade County.
454
FY1999/00 Proposed Millage Rate
July 21, 1999
Page - 5 -
Illustrated below are the current and proposed tax rates for the multiple taxing authorities.
Adopted Proposed % %of
Taxing Jurisdiction FY 98/99 FY 99/00 Inc/(Dec) Change Total
Miami Beach 33.1
General Operating 7.499 7.499 0.000 0.00
Debt Service 1.484 1.199 (0.285) (19.2)
Dade County 27.2
Countywide Operating 6.023 5.971 (0.052) (0.86)
Library 0.334 0.386 0.052 . 15.57
Debt Service 0.837 0.816 (0.021) (2.51 )
School Board 10.160 9.699 (0.461) (4.54) 36.9
Other 0.744 0.744 0.000 0.00 2.8
Totals 27.081 26.314 (0.767) (2.83) 100.0
COMBINED MILLAGE LEVY IMP ACT ON THE HOMEOWNER
Amendment 10 to the State Constitution took effect on January 1, 1995 and limited the increase in
assessed value of homesteaded property to the percentage increase in the conswner price index (CPI)
or three percent (3%), whichever is less. For 1999, the CPI has been determined to be 1.6 percent
and thereby establishes the limit for increased values as of January 1, 1999. The $25,000 homestead
exemption is applied after the increase in value as follows: asswning that the average residential
property in Miami Beach was valued at $200,000, that value is increased by the 1.6% to a new value
of $203,200. The homestead exemption of $25,000 is then deducted, yielding a taxable value of
$178,200. Using the proposed tax rates, that value is then taxed as follows:
Taxing
Jurisdiction
Proposed
@ 7.499
1.199
8.698
Miami Beach
Dade County
School Board
Other
$(22.04)
19.28
(49.64)
2.38
Totals
($50.02)
At the combined proposed millage rate of 8.698, the total dollars for both operating and debt service
paid to the City when compared to the prior year's taxable value of$175,000 and 8.983 millage rate,
would decrease by $22.04. The overall taxes would decrease by $50.02. This, of course, asswnes
that the other taxing jurisdictions adopt these millages.
455
FY1999/00 Proposed Millage Rate
July 21, 1999
Page - 6 -
BUDGET RECOMMENDATION
The Administration recommends that you adopt 7.499 mills, which will maintain current basic
service levels, fund operational costs for projects as they come on-line, and fund enhanced service
levels as possible. In addition, you may select any millage rate up to the constitutional cap of 10
mills.
FIRST PUBLIC HEARING
The fIrst public hearing on the proposed millage rates and tentative budgets for Fiscal Year 1999/00
must be held no later than 80 days (September 18th) or earlier than 65 days (September 3rd) from
the start of the TRIM ("Truth In Millage") calendar (July 1st). Other guidelines are: 1) the public
hearing cannot be scheduled on a Sunday or on those days utilized by Miami - Dade County or the
Dade County School Board for their public hearings; and 2) if on a day other than Saturday, the
public hearing must be after 5:00 P.M.
Based on these guidelines, the fIrst hearing must be held between September 3rd and September
18th. These dates are unavailable for the following reasons:
September 5, 12
September 6 or 9 and 16
September 8
Sundays
Miami-Dade County Public Hearings
Miami-Dade County School Board Public Hearing
Of the remaining days, it is recommended that the first public hearing be set for 5:01 P.M., Tuesday,
September 14, 1999 in the City Commission Chambers, City Hall, 1700 Convention Center Drive,
immediately following the City of Miami Beach's public hearing. Because no Commission meeting
is set for that date, this will be a special meeting of the Commission.
I wish to take this opportunity to thank the Office of Management and Budget, the Finance
Department, the Department Directors, Assistant City Managers, and all City personnel that worked
so diligently on this budget. The Administration looks forward to continued assistance from the
Budget Advisory Committee, the City Boards and Committees, and community groups upon release
of the Proposed Budget and at the public hearings to be held in September.
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