HomeMy WebLinkAboutResolution 2025-34056RESOLUTION NO. 2025-34056
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, DIRECTING THE CITY ADMINISTRATION, AS PART
OF THE FISCAL YEAR 2027 BUDGET PROCESS, TO PREPARE THE CITY'S
OPERATING BUDGET BASED ON THE PROJECTED "ROLLED -BACK"
MILLAGE RATE, ONCE THE PRELIMINARY TAX ROLL ESTIMATE IS ISSUED
BY THE MIAMI-DADE COUNTY PROPERTY APPRAISER; RECOGNIZING
THAT A TAXING AUTHORITY WHICH TENTATIVELY ADOPTS A MILLAGE
RATE ABOVE 100 PERCENT OF THE ROLLED -BACK RATE MUST PUBLICLY
ADVERTISE A NOTICE OF PROPOSED TAX INCREASE AS MANDATED BY §
200.065(3)(A), FLORIDA STATUTES; NOTING THAT NEW CONSTRUCTION IS
EXCLUDED FROM THE CALCULATION OF THE ROLLED -BACK RATE AND
THAT, ONCE INCLUDED IN THE TAX BASE, NEW CONSTRUCTION THAT IS
SUBJECT TO AD VALOREM TAX WILL INCREMENTALLY INCREASE
PROPERTY TAX REVENUES; AND EXPRESSING THE CITY COMMISSION'S
CONCERN THAT GOVERNMENT SPENDING HAS GROWN AT AN
UNSUSTAINABLE RATE FAR EXCEEDING INFLATION, WHICH COULD
IMPACT THE LONG-TERM FISCAL STABILITY OF THE CITY.
WHEREAS, under § 200.065(1), Florida Statutes, the "rolled -back rate' (also known as
the "last year's adjusted tax rate') is defined as the millage rate which, "exclusive of new
construction, additions to structures, deletions, increases in the value of improvements that have
undergone a substantial rehabilitation which increased the assessed value of such improvements
by at least 100 percent, property added due to geographic boundary changes, total taxable value
of tangible personal property within the jurisdiction in excess of 115 percent of the previous year's
total taxable value, and any dedicated increment value, will provide the same ad valorem tax
revenue for each taxing authority as was levied during the prior year less the amount, if any, paid
or applied as a consequence of an obligation measured by the dedicated increment value'; and
WHEREAS, § 200.065(3)(a), Florida Statutes, mandates that if a taxing authority
proposes to adopt a millage rate in excess of 100 percent of the rolled -back rate, it must publicly
advertise a "Notice of Proposed Tax Increase'; and
WHEREAS, accordingly, any millage rate above the rolled -back rate is must be publicly
advertised as a property tax increase; and
WHEREAS, § 200.065(2)(d), Florida Statutes, requires that the resolution or ordinance
adopted by the taxing authority to "state the percent, if any, by which the millage rate to be levied
exceeds the rolled -back rate computed pursuant to [§ 200.065(1)], which shall be characterized
as the percentage increase in property taxes adopted by the governing body'; and
WHEREAS, because new construction is excluded from the calculation of the rolled -back
rate, if new construction that is subject to ad valorem tax and was not included in the FY 2026 tax
rolls comes online by January 1, 2026, the City of Miami Beach will still realize increased property
tax revenues in Fiscal Year 2027 compared to Fiscal Year 2026, even if the City adopts the rolled -
back rate; and
WHEREAS, over the past five years, the size and cost of City government have expanded
dramatically, with the total operating budget growing approximately 45 percent, from $627.1
million in FY 2021 to $911.7 million in FY 2026, placing the City on a trajectory toward a nearly
billion -dollar budget —for a city with only 60,000 residents; and
WHEREAS, this level of budgetary expansion has far outpaced inflation and population
growth, and maintaining such an upward trajectory of spending is fiscally unsustainable; and
WHEREAS, the Miami metropolitan area is now ranked by Redfin as the second -most
unaffordable rental housing market in the United States, and a UBS Global Real Estate study has
branded Miami as the world's most vulnerable city for real estate bubble risk; and
WHEREAS, the risk of volatility in real estate values impacts the City's property tax base,
making it imperative that the City of Miami Beach develop the discipline to operate efficiently and
sustainably rather than depending on constant tax and spending increases; and
WHEREAS, repeated millage hikes and unchecked expenditure growth are among the
reasons the State of Florida is considering legislation to impose stricter limits on local property
tax increases, underscoring the importance of local fiscal restraint;
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby direct the City Administration, as part of the Fiscal Year 2027 budget process,
to prepare the City's operating budget based on the projected "rolled -back" millage rate, once the
preliminary tax roll estimate is issued by the Miami -Dade County Property Appraiser; recognize
that a taxing authority which tentatively adopts a millage rate above 100 percent of the rolled -back
rate must publicly advertise a Notice of Proposed Tax Increase as mandated by § 200.065(3xa),
Florida Statutes; note that new construction is excluded from the calculation of the rolled -back
rate and that, once included in the tax base, new construction that is subject to ad valorem tax
will incrementally increase property tax revenues; and express the City Commission's concern
that government spending has grown at an unsustainable rate far exceeding inflation,
endangering the long-term fiscal stability of the City.
PASSED and ADOPTED this 17 day of Mfl"6e✓ , 2025.
ATTEST:
Steven Meiner, Mayor
Rafael E. Granado, City Clerk DEC 2 2 2025
(Sponsored by Commissioner David Suarez) rS•., APPROVED AS TO
`` FORM & LANGUAGE
'INE - DRATED ' &FOR EXECUTION
CoSponsoredbyCommissioner Joseph Magazina i.. �. .�•,;
Sponsoredldetd by CanmissionerlUexJ. Femai te:x -
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Co -Sponsored byMayor Steven Melnar CityAComey Date
Resolutions - R7 AD
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: City Attorney Ricardo J. Dopico
DATE: December 17, 2025
TITLE: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, DIRECTING THE CITY ADMINISTRATION, AS PART
OF THE FISCAL YEAR 2027 BUDGET PROCESS, TO PREPARE THE CITY'S
OPERATING BUDGET BASED ON THE PROJECTED "ROLLED -BACK" MILLAGE
RATE, ONCE THE PRELIMINARY TAX ROLL ESTIMATE IS ISSUED BY THE
MIAMI-DADE COUNTY PROPERTY APPRAISER; RECOGNIZING THAT A
TAXING AUTHORITY WHICH TENTATIVELY ADOPTS A MILLAGE RATE ABOVE
100 PERCENT OF THE ROLLED -BACK RATE MUST PUBLICLY ADVERTISE A
NOTICE OF PROPOSED TAX INCREASE AS MANDATED BY § 200.065(3)(A),
FLORIDA STATUTES; NOTING THAT NEW CONSTRUCTION IS EXCLUDED
FROM THE CALCULATION OF THE ROLLED -BACK RATE AND THAT, ONCE
INCLUDED IN THE TAX BASE, NEW CONSTRUCTION THAT IS SUBJECT TO AD
VALOREM TAX WILL INCREMENTALLY INCREASE PROPERTY TAX
REVENUES; AND EXPRESSING THE CITY COMMISSION'S CONCERN THAT
GOVERNMENT SPENDING HAS GROWN AT AN UNSUSTAINABLE RATE FAR
EXCEEDING INFLATION, WHICH COULD IMPACT THE LONG-TERM FISCAL
STABILITY OF THE CITY.
BACKGROUND/HISTORY
ANALYSIS
The attached Resolution was prepared at the request of the sponsor, Commissioner David
Suarez.
FISCAL IMPACT STATEMENT
N/A
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:/Ica miamibeachfi.gov/city-hall/city-clerk/meating-notices
FINANCIAL INFORMATION
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CONCLUSION
Applicable Area
Citywide
Is this a 'Residents Riaht to Know" item. Is this item related to a G.O. Bond
pursuant to City Code Section 2-17? Project?
kin
No
Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481.
includes a principal enuaned in lobbying? No '
If so, specify the name of lobbyist(s) and principal(s):
Department
City Attorney
Sponsor(s)
Commissioner David Suarez
Co-sponsor(s)
Condensed Title
Prepare FY 2027 Budget Based on Projected Rolled -Back Rate. (Suarez) CA
Previous Action (For City Clerk Use Only)
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