R7A1-Adopt Tentative Ad Valorem Millage for General Operating PurposesCOMMISSION ITEM SUMMARY
Gondensed Title:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,
ADOPTING: 1) THE TENTATIVE AD VALOREM MILLAGE OF 5.7942 MILLS FOR GENEML OPERATING
puRposEs, wHtcH ts THTRTEEN AND FOUR-TENTHS PERCENT (13.4%) MORE THAN THE "ROLLED-BACK"
RATE OF 5.1076 MILLS; AND 2) THE DEBT SERVICE MILLAGE RATE OF 0.2295 MILLS; FURTHER SETTING
THE SECOND PUBLIC HEARING TO CONSIDER THE MILLAGE RATE FOR FISCAL YEAR (FY) 2014115, ON
TUESDAY. SEPTEMBER 30.2014 AT 5:0'1 P.M.
lntended Outcome
Ensure expenditure trends are sustainable over the long term
Supporting Data (Surveys, Environmental Scan, etc.):
ln the 2014 Community Survey, both residents and businesses reported the following area for the City related to
value for taxes paid:o Percentage of residents rating the Overall Value of City services for tax dollars paid as excellent or good
(Residents: 58%; Businesses 54%)
Item Su mmary/Recommendation :
The Administration is recommending a total combined millage rate for the City of Miami Beach of 6.0237, which
represents a decrease of 0.0926 mills. The proposed operating millage decreased 0.0692 mills and includes a
generaloperating millage rateof 5.7942 and a General Fund Capital Renewaland Replacement millage of 0.1083.
The proposed voted debt service millage rate is adjusted from 0.2529 to 0.2295, a decrease of 0.0234 mills. The
proposed millage rate decrease of 0.0926 mills reoresents approximatelv half of the remaininq millaoe rate reduction
goal of 0.2079 and does not result in a property tax increase to median or averaoe properfu owners thatqualifoforthe
homestead exemotion and the Save Our Homes cap.
The tentatively adopted combined millage rate of 6.0237 mills is 0.0926 mills less than the 6.1163 combined millage
rate for FY 2013114. The tentatively adopted operating millage of 5.7942 mills for FY 2014115 is 0.6866 mills more
than the rolled-back rate of 5.1076, and thus, the City is required to publish a Notice of Tax lncrease. The proposed
operating millage rate of 5.7942 requires a majority approval (4 of 7 votes) of the Commission.
Financial !nformation:
Amount Account
1
2
Total
Financial lmpact Summary: lncluding the proposed millage rate for FY 2014115,the City has decreased the
millage by 0.42'13 mills in the last four years and combined millage rates today remain more than 2.6 mills lower, or
31 percent, than in FY 1999/00 and approximately 1.6 mills lower than in FY 2006107. As a result, the oroposed
orooerty tax lew is aoproximatelv $13 million less in FY 2014l15 than it was in FY 2006/07.
AGEr'roA rreu R7 A I{s MIAMIBEACH oxre ?-10-1121
g MIAMIBEACH
City of Miomi Beoch, I700 Convenlion Center Drive, Miomi Beoch, Florido 33I 39, www.miomibeochfl.gov
COMMISSION MEMORANDUM
To: Mayor Philip Levine and Members mrsston
FROM: Jimmy L. Morales, City Manager
DATE: September10,2014
SUBJECT: A RESOLUTION OF THE MAYO
5.7942 MILLS FOR GENERAL OPERATING PURPOSES, WHICH IS THIRTEEN AND
FOUR-TENTHS PERCENT (13.4%) MORE THAN THE "ROLLED-BACK',RATE OF
5.1076 MILLS; AND 2) THE DEBT SERVICE MILLAGE RATE OF 0.2295 MILLS;
FURTHER SETTING THE SECOND PUBLIC HEARING TO CONSIDERTHE MILLAGE
RATE FOR FTSCAL YEAR (FYl2014115, ON TUESDAY, SEPTEMBER 30, 2014 AT
5:01 P. M.
ADMINISTRATION RECOMMEN DATION
The Administration recommends that the City Commission adopt the attached Resolution which
sets the following:
1) Proposed Millage Rates for FY 2014115:
General Operating 5.6859 mills (5.7551FY 2013114, 0.0692 decrease)
Capital Renewal & Replacement 0.1083 mills
Sub-Total Operating Millage 5.7942 mills (5.8634FY 2013114, 0.0692 decrease)
Voted Debt Service 0.2295 mills (0.2529 FY 2013/14. 0.0234 decrease)
Total 6.0237 mills (6.1163 FY 2013114,0.0926 decrease)
2\ The tentatively adopted combined millage rate of 6.0237 mills is 0.0926 mills less than the
6.1163 combined millage rate for FY 2013114. The tentatively adopted operating millage of
5.7942 mills for FY 2014115 is 0.6866 mills more than the rolled-back rate of 5.1076, and
thus, the City is required to publish a Notice of Tax lncrease.
3) The second public hearing to consider the final millage rates and budgets for FY 2014115
shall be on Tuesday September 30, 2014 at 5:01 P.M., in the City Commission Chambers,
City Hall, 1700 Convention Center Drive.
The "Rolled-Back" millage rate for FY 2014115 is the millage rate required to produce the same
level of property tax revenues in the General Fund in FY 2014115 as anticipated to be received in
FY 2013114. lt is important to note, that the January 1,2013, tax roll Citywide declined by almost
$1.02 billion (4.1o/o) between the July 1, 2013 valuation and the July 1 , 2014 valuation due to
appeals, adjustments, etc, which is part of the reason the FY 2014115 "rolled-back rate" is 0.6866
mills lower than the FY 2013/14 current millage rate and lower than it would be if the rolled-back
rate was only adjusted for the increase in revenues generated by higher property values. The area
outside of City Center RDA, which impacts General Fund revenues, declined in value by
approximately $0.24 billion during the same period of time.
CITY COMMISSION OF THE CITY OF MIAMI
22
FY 2014115 Proposed Millage
September 10,2014
Page2
The Administration is recommending a total combined millage rate for the City of Miami Beach of
6.0237. The total proposed operating millage decreases to 5.7942 mills, which includes a General
Operating millage rate of 5.6859 and a General Fund Capital Renewal and Replacement millage of
0.1083. The proposed voted debt service millage rate is adjusted from 0.2529 to 0.2295, a
decrease of 0.0234 mills.
PROCEDURE
Florida Statutes 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:
1. Adopt a tentative ad valorem millage rate for FY 2014115 operating purposes. This is
accomplished by adopting a Resolution that includes the percentage increase ordecrease
over the "Rolled-back" rate; the required Debt Service millage rate; and, the date, time, and
place of the second public hearing
State statute requires that only the title be read aloud.
2. Adopt a tentative general operating budget for FY 2014115. Also included, are budgets for
the Enterprise, lnternal Service, and Special Revenue Funds. This is accomplished by
adopting a companion Resolution. (See accompanying City Budget Agenda ltem).
Both the millage and budget Resolutions must be adopted again after a second and final public
hearing.
SUMMARY
ln FY 2010111 the city's approach to addressing the then deficit of $32 million included a
distribution of the shortfall between taxpayers and employees. Taxpayers had their tax rate
increased from 5.6555 to 6.2155, an increase of 0.56 mills. The goal of the Commission has been
to bring them back to that level as property values increase over time. lt should be remembered
that between FY 2009/10 and FY 2010/1 1 values declined by $Z.O billion driving the need for an
increase in the millage.
ln FY 201 1112lhe City took its first step in that direction with a reduction in the millage rate of 0.05
mills. The millage rate for FY 2012fi3 reduced the operating millage by an additional 0.0746 mills.
ln the FY 2013/14 budget, the millage rate was reduced 0.2275 mills. Over three years, this
reduction represents 63 percent of the goal to get back to a millage rate of 5.6555. The remaining
goalfor millage reduction is 0.2079.
The Administration is recommending a total combined millage rate for the City of Miami Beach of
6.0237, which represents a decrease of 0.0926 mills. The proposed operating millage decreased
0.0692 mills and includes a generaloperating millage rate of 5.7942 and a General Fund Capital
Renewal and Replacement millage of 0.1083. The proposed voted debt service millage rate is
adjusted from0.2529 to 0.2295, a decrease of 0.0234 mills. The proposed millage rate decrease of
0.0926 mills represents approximately half of the remaining millage rate reduction goal of 0.2079
and does not result in a property tax increase to median or average property owners that qualify for
the homestead exemption and the Save Our Homes cap.
23
FY 2014115 Proposed Millage
September 10,2014
Page 3
It is important to remember that in prior years, the City of Miami Beach significantly reduced tax
rates as property values increased. Between FY 1999/00 and FY 2009/10, total combined City of
Miami Beach propertytax rates declined approximately2.S mills. ln FY 2007108 alone, the millage
rate declined by approximately 1 .8 mills, with annual savings to the average homesteaded property
of over $400. Further, despite an adjustment of 0.56 mills in the operating tax rate in FY 2010/1 1,
City of Miami Beach proposed combined millage rates today remain more than 2.6743 mills lower
than in FY 1999/00 (31 percent), and 1.6493 mills lower than 2006/07 (21.s%o).
ANALYSIS OF PROPERTY VALUES IN MIAMI BEACH
On July 1, 2014, the City received the "2014 Certification of Taxable Value" from the Property
Appraiseds Office stating that the taxable value for the City of Miami Beach is $27.1 billion including
$152.2 million in new construction. The preliminary 2014 value represents an increase of $2.4
billion or 9.9 percent more than the July 1 ,2013, Certification of Taxable Value of $24.6 billion and
an increase of 9.3 percent, excluding new construction.
The comparative assessed values for the Miami Beach Redevelopment Agency City Center
redevelopment district increased from $3.9 billion to $4.2 billion an increase of $315 million or an
8.1 percent increase over 2013 certified values. ln addition, assessed values within the geographic
area formerly known as the South Pointe redevelopment district increased from $3.9 billion to $4.3
billion an increase of $413 million, or a 10.5 percent increase in values over 2013 certified values.
As a result, taxable values in the areas outside the City Center RDA/South Pointe area increased
by 10.2 percent, from $16.9 billion to $18.6 billion, an increase of $1.7 million.
Citywide values excluding City Center increased from $20.8 billion to $22.9 billion, an increase of
$2.1 billion or 10.3 percent. Values outside the City Center area determine General Fund
revenues.
COMPARATIVE ASSESSED VALUES (in billions)
Jon. I 2013 Volue lin billionsl
% Cho
)on. 1,2014
Volue (in
hillionsl
Chonge from 2013
Volue lBudoetl
As of July 1
20r3
(For FY
2013/14
Budoetl
Revised
Volue (For
FY
2Ot3/14
Proimtionl
Chonge in
2013
Volues
As of July I
20r 3
lFor 2014/ | 5
Budoetl
$
lin billionsl % Cho
RDA - Ciiy Ctr $ 3.82t,$ 3.6341 $ (0.2373 4.1"1 $ 4.1867 $ 0.3153 8.17
Soulh Poinle 3.914t 3.7692 (0. r 456 -3.7'l 4.3274 $ 0.4127 10.57,
Generol Fund excl
S.Pte
\6.870i 16.2354 (0.6349 -3.8'l 18.5942 $ 1.723s 10.27,
Totol Citfrvide s 24.6s6:$ 23.6387 (r.0r78 4.1"/,$ 27.108,$ 2.4519 9.90/,
Citywide Net ot
iirv Can+ar $ 20.785 r $ 20.0046 $ (0.7805 3.87 $ 22.921)$ 2.136(10.37
24
FY 2014115 Proposed Millage
September 10,2014
Page 4
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, the value for each mill is determined by the 2Q14 Cerlification
of Taxable Value and has been set al$27.1 million. Florida Statutes permit a discount of up to five
percent for early payment discounts, delinquencies, etc. Therefore, the 95 percent value of the mill
is $25.7 million. Net of Center City RDA tax increment available to the General Fund, the value of
one mill at 95 percent is $22.0 million.
IMPACTS OF CHANGES IN PROPERTY VALUES
The FY 2013114 operating millage rate for general City operations was 5.8634 based on July, 2013
Certification of Taxable Value. Based on the July 1 ,2014 Certiflcation of Taxable Value, 5.8634
mills would generate approximately $1OS.t million at 100% collection ($tSO.g million at 95o/o
collection) in generaltax revenues, an increase of $14.3 million at100o/o collection ($tg.O million at
95% collection) over FY 2013114 property tax revenues Citywide (General Fund, City Center RDA
and the South Pointe area). The General Fund property tax revenues would increase by $t t.g
million, if the FY 2013114 millage rate was maintained.
Further, the January 1,2013 tax roll Citywide declined by $t.02 billion $.1Yo) between the July 1,
2013 valuation and the July 1,2014 valuation due to appeals, adjustments, etc., which is part of the
reason that the FY 2014115 "rolled-back rate" is significantly less than the FY 2013/14 current
millage rate.
STATE LEGISLATED OPERATI NG MI LLAGE REQU ! REMENTS
Pursuant to recently enacted State legislation, the City may elect to approve millage rates above
the roll-back rate up to the constitutional cap of 10 mills subject to the following votes by the
Commission or referendum:
. Option l: A majorityof the approvalof the Commission Millage is required to approve a millage
up to 7 .2121 (equivalent to 3.15 percent increase in property tax revenues). The 3.15 percent
increase is the state per capita personal income gain for the prior calendar year.
. Option ll: A twothirds approval (5 of 7 votes) of the Commission is required to approve a
millage up to 7.9333 (equivalent to a 10% increase in the ad valorem revenues above Option l).
. Option !ll: A unanimous approval of the Commission or referendum is required to approve a
millage above 7.9333 up to the 10 mill cap
The proposed operating millage rate of 5.7942 therefore requires a majority approval (4 of 7 votes)
of the Commission.
DETERMINING THE VOTED DEBT SERVICE MILLAGE LEVY
The general obligation debt service payment for FY 2014115 is approximately $5.9 million. Based
on the July 1 ,2014 Certified Taxable Value from the PropertyAppraiser, these bonds would require
the levy of a voted debt service millage of 0.2295 mills. This represents a decrease of 0.0234 mills.
25
FY 2014115 Proposed Millage
September 10,2014
Page 5
COMBINING THE OPERATING AND VOTED DEBT SERVICE MILLAGE LEVY
At the July 23, 2014 Commission meeting, the Commission set the operating millage at the same
level as FY 2013114 and the voted debt service millage decreased by 0.0234 mills. This represents
a total decrease in the operating millage rate of 0.0234 mills.
On August 29th, the Finance and Citywide Projects Committee voted to reduce the operating
millage rate an additional 0.0692 mills for a combined millage rate reduction of 0.0926 mills
compared to FY 2013114.
lllustrated below is a comparison of the combined millage rates and ad valorem revenues to the
City of Miami Beach for FY 2013114 and'FY 2014115, including RDA. lt is recommended that in the
General Fund, 0.1083 mills of the totaloperating millage continue to be dedicated to renewaland
replacement, resulting in approximately $2.18 million in renewal and replacement funding. The
proposed millage rate is 1.5%o less than FY 2013114 and 21.5% less than FY 2006107.
% lnc/(Dec)
Gity of Miami Beach Millage Rates
Operating
Capital Renewal & Replacement
Sub-total Operating Millage
Debt Service
Total
FY 06/07
7.192C
0.182C
FY 13t14
5.7551
0.1083
Inc/(Dec)
-0.0692
0.0000
rrom rrom
FY13l14 FY 06/07
7.3740
0.299C
5.8634
0.2529
-0.0692
-0.0234
-1.2Yo -21.40/<
-9.3o/o -23.20/<
7.6730 6.1163 6l$2$-0.0926 -1.5o/o -21.5V.
IMPACT OF PROPOSED MILLAGE ON PROPERW OWNERS
Homesteaded Properties
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 consumer price index
(CP!) or three percent (3%), whichever is less. For 2014, the CPI has been determined to be 1.5
percent and therefore, the increase is capped at 1.5o/o for increased values as of January 1 ,2014.
Overall, based on the homesteaded properties in the January 1,2013 homestead values as of July
1,2013 valuation, the median value of homesteaded property in Miami Beach for 2013 was
$132,371, and the average $317,086. Applying the increase to the market value of all existing
homesteaded properties from the 2013 tax roll, and the 1 .5 percent CPI adjustment, the impact of
the millage rate adjustment to homesteaded properties would be no increase in property taxes as
shown in the following table.
26
FY 2014115 Proposed Millage
September 10,2014
Page 6
Homesteaded Properties
FY 2013114
Ft 20L4ltS
with 1.5% CPI
Median Averaqe Median Averaqe
!013 Preliminary Taxable Value 3 132.371 3 317.086 3 13/1,357 a 321,U2
City of Miami Beach
Operating
Voted Debt
Total Miami Beach
$ 776
33
$ 1,859
80
$ 778
31
$ 1,86s
74
$ 809 $ 1,939 s 809 $ 1.939
Change in Taxes
Operating
Voted Debt
Total Miami Beach
t 2$
(21
6
(6
t $
Source: Miami-Dade Countv ProDerty Appraise/s - 2013-averaqe-medianhomestead-residential-values file
Non-Homesteaded Properties
The annual increase in market value of a non-homestead property is capped at 10 percent (does
not apply to school millages). The city-wide average increase in property values is 9.9 percent.
The property value of individual properties may increase more or less than 9.9 percent, but not
more than 10 percent.
Historical Perspective
!t is important to remember that in prior years, the City of Miami Beach significantly reduced tax
rates as property values increased. Between FY 1999/00 and FY 2009110, property tax rates
declined approximately 2.8 mills. ln FY 2007lOA alone, the property tax rate declined by
approximately 1.8 mills, with annual savings to the average homesteaded propertyof over$400. ln
addition, in FY 2005/06 and FY 2006107, the City funded $200 and $300 homeowner dividends
paid to homesteaded property owners in the City.
r-_-
I| '* lt"*iI '*lL*il-tI .e "".rlotlcri o 5.@l
l-a I
t= It,*1il| '*i'I r*ll"*l
I
I
TOTAT COMBINED MILI.AGE
llilfil
FisalYeaE
Although the City increased the operating tax rate by 0.56 mills in FY 2010111, the City has
decreased the millage by 0.4213 mills in the last four years and combined millage rates today
remain more than 2.6 mills lower, or 31 percent, than in 1999/00 and approximately 1 .6 mills lower
than in 2006107 . As a result. the proposed propertv tax lew is approximatelv $13 million less in FY
2014/15than itwas in FY 2006/07.
27
FY 2014115 Proposed Millage
September 10,2014
PageT
Property Value, Millage, and Property Tax Levy
Toxoble Volues
Chort
Toxoble Propet
Volues lbillions)
Finol,/Revired
Toxoble
Volues
lhillinncl
Mrll6s- 8.1.,Tov Lew Iin nrlllion.;l
Totol Combined
Cirywide
Gnerol
Fund/RDl Totol Tox Levy
includino Debt
Generol Fund
Totol
(including S.
Pointe, ond
Renewol &
Y1997 /98 $ 646 $ 6.40 9. t t\N 7 4990 s 5745 46 78
Y 1598/99 $ 692 $ 687 8.9830 7A990 $ 6037 $ a4.b6
Y1999/@ $ 7.66 $ 7.54 8.6980 7A990 $ 6a.29 $ 47.36
Y2Ccr)/Ol $ 832 $ 8.22 8.5550 7.3990 $ 69.08 s 49.75
Y2Cn1 /O2 s 940 $ 9.22 8.3760 7 2990 s 7597 s 5437
Y2Co2/O3 $ t0s6 $o.4 8.3220 7.2990 $ 84 81 $ 6l05
Y)m?/oa $ 1209 $85 8. I 230 7.2990 $ 95.39 $ 68. 17
FY2CfiA/05 $ 14.04 3.86 8. I /30 7 4250 1Q.74 $ .29.38
Y?An5 /06 s 17A s 1.5 I 0730 7 481(J s 13.5 9r s 169
Y266/O7 $ 2274 $ 2226 7 673C,7.3740 $ 168 38 $40.31
Y2Cf7/O8 $ 2685 $ 26 14 5.8970 5.6555 $ r 50.42 $5.33
FY2A)8/@ $ 26.90 25 89 5.8930 5.6555 t50.59 $5.94
Y2009 0 s 2a7a s 2324 59123 5 6555 s 138 70 $573
Y2010/$l0 $ 20.97 6.5025 6.2155 $ I36s5 $2.14
Y20r l 2 $ 2198 $ 20.7 5 6.4539 6. r 655 $ \34 75 $1.29
Y2Q12 3 s 23.07 22.O2 6.3477 6.0909 $139 l0 $4.32
.Y2013/4 s )a66 s 2364 6 il63 .5 8634 s 1a3 26 s 741
Y2O1 4/5 $27 l0 6.0237 5.7942 $ 155.10 $7.76
Overlapping Jurisdictional Operating and Debt Service Millages
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 lnland Navigational District.
The countywide tax rate for Miami-Dade County decreased by 0.0345 mills to 4.6690; the library tax
rate increased 0.1 1 15 mills to 0.2840 mills; and the debt service millage increased 0.0280 mills to
0.4500 mills.
The tax rate forthe Miami-Dade School District decreased slightlyfrom 7.9770 mills to 7.9740 mills.
The Children's Trust millage is maintained at 0.5000 mills. As a whole, the millage rates for the
oc
.o
=
oJ
x(5
F
'15oco
Eoo
240
220
200
180
'160
140
120
100
303
E'oa202
o,
Eo10\q
=ooa
w PygpgfiValues --r-Tax Levy including Debt
'07 '08 '09 '10 '11 ',12 ',13 '.14 ',15
28
FY 2014115 Proposed Millage
September 10,2014
Page 8
South Florida Water Management District, Okeechobee Basin, Everglades Project, and Florida
lnland Navigational District decreased 0.0174 mills to 0.4187 mills.
With the proposed rates for FY 2014115, the Miami Beach portion of the FY 2014115 tax bill is
approximately 30 percent of the total bill. Of note. the Countv millaoe is 0.9830 mills less than their
millaoe in FY 2006/07. as compared to the Citv's proposed millaqe which is 1 .6493 mills less than
the Citv miilaqe in FY 2006/07. Further, the School Board millage is only minimally below the FY
2006107 millage rate, despite the recently proposed decrease. The significant difference in the total
overlapping millage rate is a direct result of the City's effort to keep the millage rates as low as
possible. A summary of the tax rate changes is provided in the following table.
OVERI.APPING TAX MILLAGE F{ Osl0i
"t
L3lt4 variance
homlSlL4
variance
from 06/07
14lL5
Total
:lty of Miami Beach Millage Rates
Operating 7.L921 5.755:ir;ii6:,f,n-t!-0.069,-1.506
Capital Renewal & Replacement 0.182r 0.108::::::O:10E:0.000(.0.073
Subtotal Operating Millage 1.974t 5.863 ::::W3.79tI -o.0692 -1.5791
Voted Debt Seruice 0.299r o.2521 r*...ir 2291 -o.0234 {.069:
Tota 7.6731 6.116:::.{S2!l:.0.G,2(-1.549:t@,
vliami Dade Countv
Countywide 5.515t 4.7031 ,.,...:,4.6691 -0.034!{.945(
Librarv 0.486r 0.1721 o,?*i!l 0.111:4.202(
Debt Seruice o.285i 0.4221 0.028(0.165(
Subtota 5.386t 5.298t 0.105t -0,983(277,
;chool Board 8.105r 7.g-nl ts'r41 {1.003r {.131(399
:hildren's Trust o.4121 0.500(:;*.50ff 0.000(0.078(2A
)ther 0.735r 0.445:iitNt li0;4lri {.026t {.317 2?,
TotE 2r.3221 20.336t ll|i&|tlgt -0.017{-3.002(t(xr9r
lmpact of Combined Tax Rates of Overlapping Jurisdictions on Homesteaded Properties
The median and average January 1,2013 taxable values of $132,371and $317,086, respectively,
will increase by 1 .5o/o CPlinFY 2014115 due to the Save Our Homes Cap which only allows taxable
values to increase by 3.0% or CPl, whichever is lower.
Applying the proposed combined millage rates to the median and average taxable values results in
an additional $38 for the median and a $92 increase for the average. These increases are
mitigated by no increase in property taxes for the median or the average from the reduction in
millage in the City of Miami Beach's portion of the property tax bill.
Median properties would pay approximately $2,729 for all taxing jurisdictions combined, while the
average taxes generated would be approximately $6,540 per homesteaded property. Of these
taxing jurisdictions, the highest component is the Miami-Dade School Board, at $1,071 for a
median value property, and $2,566 for an average valued property.
The following table provides examples of changes in property taxes for homesteaded properties
using the proposed tax rates and potential changes from 2013 values.
29
FY 2014115 Proposed Millage
September 10,2014
Page 9
lmpact on Homesteaded Properties Assumlng
Chanoes ln Taxable Value from Januaw 1.2014
FY 20',t31',t4
FY 201rUl5
wlth 1.5% CPI
M€dian I Averam Median I AveEoe
!013 Preliminary Taxablo Value 0 132,371 $ 317,086 $ 134,357
'
321,U2
City of Miami Beach
Operating
Voted Oebt
Total Miami Beach
Miami Dade County
Schools
Other
$ 776 $ 1,859
33 80
s 778 $ 1.865
31 7l
$ 809 $ 1.939 $ 809 $ 1.939
701
1,056
1rc
1,680
2,529
qnn
726
1,O71
1ra
1,739
2,566
,OA
Tot6 s 2.691 S 6.448 $ 2.729 $ 6.540
3hanoe in Taxes
City of Miami Beach
Op€rating
Vot€d D€bt
Total Miami Beach
Miami Dade County
Schools
Other
$ ,$ t
(2) (6
t-$-
25
15
(2)
59
37
(4
Total $ 38$ 92
As with the City of Miami Beach millage rates, impacts of the combined jurisdictional millage rates
for non-homesteaded properties are based on the individual property values.
SECOND PUBLTC HEARING
The second public hearing on the tentatively adopted millage rate and budget tor FY 2014/15 must
be advertised no later than 15 days after the first public hearing. lt is recommended that the second
public hearing be set for Tuesday, September 30, 2014 al5:01 P.M., in the City Commission
Chambers, City Hall, 1700 Convention Center Drive.
CONCLUSlON
The Administration recommends adoption of the attached Resolution which sets both tentative
operating and debt service millage rates for FY 2014115 and establishes a second public hearing to
be held on Tuesday, September 30, 2014, at 5:01 P.M.
JLM/JW^@
30
RESOLUTION NO.
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ADOPTING: 1) THE TENTATIVE AD VALOREM
MILLAGE OF 5.7942 MILLS FOR GENERAL OPERATING PURPOSES,
wHtcH rs THTRTEEN AND FOUR-TENTHS PERCENT (13.4%) MORE THANTHE "ROLLED-BACK" RATE OF 5.1076 MILLS; AND 2l THE DEBT
SERVICE MILLAGE RATE OF 0.2295 MTLLS; FURTHER SETTTNG THE
SECOND PUBLIC HEARING TO CONSIDER THE MTLLAGE RATE FOR
FtscAL YEAR (Fyl 2014t15, ON TUESDAY, SEPTEMBER 30, 2014 AT 5:01
P.M.
WHEREAS, the City of Miami Beach significantly reduced tax rates as property values
increased. Between FY 1999/00 and FY 2011112, total combined City of Miami Beach property
tax rates declined approximately 2.2 mills despite an increase of 0.56 mills in FY 2010/11; and
WHEREAS, ln FY 2007108 alone, the millage rate declined by approximately 1.8 mills,
with annual savings to the average homesteaded property of over 9400; and
WHEREAS, City of Miami Beach combined millage rates remain more than 2.6 mills
lower, or31 percent, than in FY 1999/00 and approximately 1.6 mills lowerthan in FY 2006/07,
resulting in a net tax levy reduction of approximately $13 million; and
WHEREAS, the administration is continuing to evaluate opportunities to further reduce the
millage, and
WHEREAS, on July 23, 2014, the City Commission following a duly noticed public
hearing, adopted Resolution No. 2014-28674, which set the proposed general operating millage
rates at 5.8634 mills (excluding debt service) for general operating purposes, and 0.2295 mills for
debt service, a reduction of 0.0234 mills from the FY 2013114 debt service rate; and
WHEREAS, on August 29, 2014, the Finance and Citywide Projects Committee
recommended a reduction of the general operating millage rate of 0.0692 for a proposed general
operating millage rate at 5.7942 mills (excluding debt service), for a total reduction of 0.0926 mills
from the FY 2013114 rate for general operating purposes, and 0.2295 mills for debt service; and
WHEREAS, Section 200.065, Florida Statutes, requires that at the conclusion of the first
public hearing on the City's proposed tax rate and budget, the City Commission: 1) adopt a
tentative ad valorem millage rate for FY 2014115 operating purposes; and 2) the required Debt
Service millage rate; this is accomplished by adopting a Resolution that includes the percentage
increase or decrease over the "rolled-back" rate; and
WHEREAS, at this time the Administration recommends that the City Commission set the
second and final public hearing to consider the aforestated millage rates for FY 2014t15.
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NOW THEREFORE, BE !T 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
2014115, on all taxable and non-exempt real and personal property located within the corporate
limits of the City of Miami Beach, Florida, as follows:
For the purpose of operating the government of the City, the rate assigned
amounts to 5.7942 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 four-tenths percent (13.4%) more
than the "Rolled-back" rate of 5.1076 mills.
For the purpose of providing payment on the principal and interest
portions of the General Obligation Bond Debt outstanding, the rate
assigned amounts to 0.2295 mills.
(2) The tentative adopted millage rates for the City of Miami Beach, Florida for FY 2014t15
are subject to a second and final public hearing, herein set for and to be held at 5:01 p.m.,
Tuesday, September 30, 2014, in the City Commission Chambers, City Hall, 1700 Convention
Center Drive, Miami Beach, Florida.
PASSED and ADOPTED this 1Oth day of September, 2014.
Philip Levine, Mayor
ATTEST:
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
(a)
(b)
q-1- (+
-
Dole
Rafael Granado, City Clerk
-L .(-
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