2004-25632 Reso
RESOLUTION NO. 2004-25632
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, SETTING THE
PROPOSED MILLAGE RATES FOR FISCAL YEAR (FY)
2004/05, 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 Rates, the "Rolled-Back" Rate, and the date,
time, and place of the first public hearing.
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 2004/05
General Operating
Capital Replacement & Renewal
Debt Service
7.299 mills
0.126 mills
0.748 mills
8.173 mills
2)
"Rolled-Back" Rate
6.314 mills
3) The first public hearing on the proposed millage rate and the tentative budget for FY
2004/05 shall be held at 5:01 p.m., date to be announced at the July 28, 2004
Commission Meeting, in the City Commission C ambers, City Hall, 1700
Convention Center Drive, Miami Beach, Florida.
PASSED and ADOPTED, this 28th day of July, 2
MAYOR
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C I T Y 0 F M I A M I B E A C'H
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
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COMMISSION MEMORANDUM
To:
Mayor David Dermer and
Members of the City Commissi
Date: July 28, 2004
From:
Jorge M. Gonzalez
City Manager
Subject:
A RESOLUTION OF HE 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 (FY) 2004/05;
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.
SUMMARY
The Administration is recommending the City's total millage rate be maintained at the
current rate of 8.173. The operating millage rate will remain at the current rate of 7.299 and
debt service millage rate will decrease by 0.126, from 0.874 to 0.748. The 0.126 mills
reduced from debt service will be reserved for Capital Replacement and Renewal.
Although the overall millage will remain the same as last year, due to increases in
assessed value there will be a net increase of $31.05 in the amount of taxes that "the
average residential homeowner" (who owns a $200,000 home with homestead exemption)
will pay to the City in the coming fiscal year. The School Board has announced a decrease
and the County has announced that there will be no overall increase in the property tax
rate, but due to increases in assessed values, the combined impact on "the average
homeowner" in Miami Beach will be an annual increase of $59.98.
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 2004/05:
General Operating
Capital Replacement & Renewal
Debt Service
7.299. mills
0.126 mills
0.748 mills
8.173 mills
(7.299 last year)
(0.000 last year)
(0.874 last year)
(8.173 last year)
FY 2004/2005 Proposed Millage Rate
July 28, 2004
Page 2
2) "Rolled-Back" Rate (Truth in Millage)
6.314 mills
3) The first public hearing to consider the proposed millage rates and tentative
budgets for FY 2004/05 shall be at 5:01 p.m., date to be announced at the
July 28,2004 Commission Meeting, in the City Commission Chambers, City
Hall, 1700 Convention Center Drive, Miami Beach, Florida
DECISION-MAKING PROCESS
The budget development process has included participation from within and from outside
City Hall. Budget briefings were held on March 10th, July 12th, 16th, and 20th to inform the
Commission and the citizens of preliminary General Fund revenue projections and
department expenditure requests for FY 2004/05.
The Budget Advisory Committee (BAC) reviewed the proposed budgets of all major
departments and offered comments and suggestions throughout the process. In addition,
the Finance & Citywide Projects Committee held a special meeting on July 22,2004, for
the purpose of informing both the Commission and the citizens about the status of the
proposed General Fund budget. Details of new and enhanced services and proposed
budget cuts as well as Administration recommendations were provided to the Commission
in early July.
Maintaining the basic service level into FY 2004/05 will translate into an operating General
Fund Budget of $163,730,654 which is $11,368,218 or7.5% greater than the FY 2003/04
adopted budget of $152,362,436. In addition, the budget adds $2,955,274 for enhanced
service levels and $1,347,070 dedicated for Capital Replacement and Renewal. Therefore,
the total General Fund operating budget is $168,032,998 which is $15,670,562 or 10.3%
greater than the FY 2003/04 adopted budget of $152,362,436.
This proposed budget recommends implementing over $2.2 million of newly identified
adjustments within the organization as well as new or increased services in the amount of
$2.9 million. In the Communications Department, funding has been provided for a
quarterly newsletter to be mailed to all residents along with the Recreation Review and
providing information on City events, performances and other items of interest to the
citizens.
In the Office of Budget & Performance Improvement (OBPI), funding is being provided for a
Systems Analyst for performance improvement who will start by working with the Building
Department to improve their productivity by maximizing the use of existing software
applications. These will include the permitting system, handheld computers, interactive
voice response system and the new queuing system for walk-through customers.
Additional funding has been allocated to provide clerical support to the OBPI Director.
FY 2004/05 Proposed Millage Rate
July 28, 2004
Page 3
In the City Clerk's Office, we have included funding to provide Spanish translation/subtitles
for the taped City Commission meetings. Additional funding will provide internet access to
all City documents currently scanned in Laser Fiche, opening public access to all City
resolutions, ordinances,. and contracts.
The Economic Development Department will be adding a Field Monitor for beach and
market concessions, special events, and film permits. Costs will be fully offset by additional
revenues generated.
Funding has been allocated to the Planning Department for a consultant study and a
Senior Planner to develop a Major Use Special Permit review process to supplement or
replace the existing concurrency management system. There is the potential to generate
additional revenues in the future. One additional Senior Planner will provide better
neighborhood planning including implementation of the neighborhood conservation
ordinance.
In the area of Tourism & Cultural Development, operating subsidies will be provided to the
Colony and Byron Carlyle Theaters that will be partially offset by revenues. The Bass
Museum will receive City Center RDA revenues to pay the annual air conditioning
maintenance agreement.
The Neighborhood Services area will create three Code Enforcement Officer positions to
provide expanded coverage and enhanced service levels throughout the City. Funding for
one of these positions will come from Community Development Block Grants (CDBG).
Funding is also provided for a contract for nuisance animal removal. Additional funding is
being provided to better address the homeless situation throughout the City.
The Parks & Recreation Department will receive funding for professional services and
other support costs for additional landscaping related to completed CIP projects such as
Washington Avenue, Orchard Park Streetscapes, the Regional Library, and La Gorce/Pine
Tree and Marseille Drive. Funding from the City Center RDA will provide professional
services and other support costs for additional landscaping related to the completed
Beach Walk from 21st through 14th Streets. This budget also provides funding fora 10-year
extended warranty for new exterior sport lighting at North Shore Park and Tennis Center.
Lastly, an Urban Forester position will be added to manage the City's urban forest,
including inventory and replacement reserve requirements for all City-owned trees, plan
review focusing on green space, and education of the general public concerning tree
issues.
In the Capital Improvement Projects Department, funding will provide professional services
to perform construction document reviews and one Financial Analyst I position for
processing invoices, charge backs, requisitions, and providing more timely payments and
allowing project managers to dedicate additional time to projects. A Paralegal has been
added to assist in responding to contractual and legal issues related to capital projects,
provide for more timely completion of projects and allow project managers to dedicate
additional time to projects. Additionally, two Field Inspectors will provide service to the
three CIP districts as well as Citywide and Parking projects.
FY 2004/05 Proposed Millage Rate
July 28,2004
Page 4
The Police Department will be funding a consultant study to examine required staffing
levels, scheduling, policies and guidelines. There will be a total of six additional police
officers on the streets. Thiswill be accomplished through a series of reassignments; one
police officer for the Terrorism Task Force will be funded by the LETF, an additional
Lieutenant and two police officers will be funded by the RDA, and two police officers will be
transferred from the School Resource Unit of the Criminal Investigation Division and
replaced by two civilians. Additional contract security personnel funding has been provided
for the North Shore Park & Youth Center, Flamingo Park & Pool and for half a year at
Normandy Park and Pool. The department will manage all contracted security personnel
for the City.
The Fire Department has received funding to convert a Data Entry Clerk in the Fire Rescue
Division from part time to full time to provide support for the medical director as well as the
Assistant Fire Chiefs. The Ocean Rescue Division has received funding to convert two part
time lifeguard positions to full time to fully staff the 41 st Street lifeguard stand. Two currently
vacant fire inspector positions will be filled with state-certified inspectors which will allow
two fire fighters to return to the front lines, with the anticipation that as additional positions
become available we will continue this practice.
In the Sanitation area, funding will provide enhanced litter crews to the Mid-Beach 41st
Street and North Beach 71 st Street commercial districts. Waterway clean-up efforts in North
Beach will be continued. The RDA will provide funding for litter crews for completed CIP
projects including the Beach Walk and the completed areas of Collins Park Cultural Center.
Additional funding is provided for a part time auditor in OBPI who will enhance monitoring
of franchise fees, roll-off fees, and right-of-way fees and generating an equal increase in
revenues.
The proposed budget has an additional 0.126 millage dedicated for Capital Replacement
and Renewal. As I proposed in the FY 2003/04 General Fund budget, once again the City
has an opportunity to establish a restricted account for the renewal and replacement of the
City's facilities and infrastructure. This concept is in response to concerns expressed by
our citizens throughout the development and implementation of our Capital Improvement
Program and the administration's desire to maintain the City in a "world-class" manner.
This opportunity would result in a restricted amount of FY 2004/05 of approximately $1.35
million to be used exclusively to provide for replacement and renewal of capital items
related to our facilities and infrastructure over and above the $27.4 million already included
in the City's Proposed FY 2004/05 Budget for recurring maintenance. This additional
millage would be reviewed and approved each year by the City Commission as part of the
budget process, and would be used exclusively to address major capital replacement and
renewal needs for General Fund departments for those capital expenditures that help to
extend or replace the useful life of ourfacilities and infrastructure. Funding for these needs
have never been provided in the Budget.
FY 2004/05 Proposed Millage Rate
July 28, 2004
Page 5
STATUTORY REQUIREMENTS
FS 200.065, 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, 2004), to advise the Miami-Dade County Property Appraiser of the
proposed general operating millage rate, 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 2004/05. 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 final 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.
ANALYSIS OF PROPERTY VALUES IN MIAMI BEACH
On July 1, 2004, the City received the "2004 Certification of Taxable Value" from the
Property Appraiser's Office stating that the taxable value for the City of Miami Beach is
$14,040,817,181, including $348,941,191 in new construction, which is one of the largest
increases this City has experienced in its recent history.
The preliminary 2004 value represents an increase of 18.5 percent over 2003's final value
of $11,844,748,005. Alternately, the increase is 16.1 percent over 2003's preliminary value
of $12,094,161,830. The difference of $249,413,825 between 2003's preliminary and final
values represents the equalization loss of less than 2.1 percent due to appeals, etc.
The comparative assessed values for the Miami Beach Redevelopment Agency South
Pointe redevelopment district increased by $420,147,746 or 32.1% percent from
$1,307,656,152 to $1 ,727,803,898. The assessed values in the City Center redevelopment
district increased by $134,571 ,293 or9.0 percentfrom $1 ,498,627,666 to $1 ,633,198,959.
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
2004 Certification of Taxable Value and has been set at $14,040,817. 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 $13,549,388.
FY 2004/05 Proposed Millage Rate
July 28, 2004
Page 6
Preliminary budget estimates reveal that the millage rate of 7.425 mills will be sufficient to
fund a current, basic service level as it presently exists, and selected service
enhancements, into the next year. It also reserves 0.126 mills for Capital Replacement
and Renewal needs.
The proposed millage rate of 7.425 mills will generate ad valorem tax revenues of
$100,604,206 (of which $21,223,277 will be transferred to the Redevelopment Agencies)
for a net revenue total of $79,380,929 in the General Fund. The $79,380,929 includes
$1,347,070 for Capital Replacement and Renewal. Excluding this amount, the General
Fund increased $9,864,883 (14.5%) from $68,168,976 to $78,033,859.
DETERMINING THE DEBT SERVICE MILLAGE LEVY
The debt service payment for FY 2004/05 is $ 10,134,942 and requires a tax rate of 0.748
mills. This rate is 0.126 mills, or fourteen and four tenths percent (14.4%) less than the FY
2003/04 rate of 0.874 mills. The decrease in millage of 0.126 is proposed to be dedicated
for Capital Replacement and Renewal.
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 2003/04 (final) and FY 2004/05 (preliminary) including
RDA.
Tax Rate Tax Levy
FY 03/04 FY 04/05 Incl(Dec) FY 03/04 FY 04/05 Incl(Dec)
General Operating 7.299 7.425 0.126 $83,428,898 $100,604,206 $17,715,308
Debt Service 0.874 0.748 (0.126) 9.989.979 10.134.942 144.963
TOTAL 8.173 8.173 (0.000) $93,418,877 $110,739,118 $17,320,271
If these recommended millage rates are tentatively adopted, then the combined tax rate will
remain the same as the current year. The operating millage will increase by 0.126, for
Capital Replacement and Renewal and debt service millage will decrease by 0.126 mills.
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 03/04, the Miami Beach portion of the total tax
bill was 32.4 percent. The recommended millage rates for FY 2004/05 will place the
Miami Beach portion of the tax bill at 32.6 percent based on tax rates announced by
other jurisdictions.
FY 2004/05 Proposed Millage Rate
July 28, 2004
Page 7
Revised FY 2004/05 tax rates may be considered by Miami-Dade County on September 7,
2004. The countywide tax rate will remain 5.969 mills; the County's debt service will remain
at 0.285 mills. The Library District has announced that the millage will remain at 0.486
mills. While it is not possible to determine the exact amount returned in additional
services. it should be noted that Miami-Dade County returned $13.915.951 durinQ FY
2003/04 in tax-increment funds for the Redevelopment AQency and its two tax-increment
districts.
The Miami-Dade County School Board is scheduled to discuss its final tax fate on
September 8, 2004 but has tentatively announced a rate of 8.899 mills; a decrease of
0.201 mills.
The South Florida Water Management District has proposed no increase from the current
rate of 0.697 mills. The South Florida Inland Navigation District has proposed no increase
from the current rate of 0.039 mills.
Illustrated in the following chart are the current and proposed tax rates for the multiple
taxing authorities.
Adopted Proposed % %of
Taxing Jurisdiction FY 03/04 FY 04/05 Incl(Dec) Change Total
Miami Beach
General Operating 7.299 7.299 0.000 0.0 32.6
Capital Replacement 0.000 0.126 0.126 100.0
Debt Service 0.874 0.748 (0.126) (14.4)
Miami-Dade County
Countywide Operating 5.969 5.969 0.000 0.0 28.9
Library 0.486 0.486 0.000 0.0
Children's Trust 0.500 0.500 0.000 0.0
Debt Service 0.285 0.285 0.000 0.0
School Board 9.100 8.899 (0.201 ) (2.2) 35.5
Other 0.736 0.736 0.000 0.0 3.0
Totals 25.249 25.048 (0.201 ) (0.8) 100.0
COMBINED MILLAGE LEVY IMPACT 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
consumer price index (CPI) or three percent (3%), whichever is less. For 2004, the CPI
has been determined to be 1 .9 percent and therefore, the increase is capped at 1 .9% for
increased values as of January 1, 2004. The $25,000 homestead exemption is applied
after the increase in value as follows: assuming that the avefage residential property in
Miami Beach was valued at $200,000, that value is increased by the 1.9% to a new value
of $203,800. The homestead exemption of $25,000 is then deducted, yielding a taxable
value of $178,800.
FY 2004/05 Proposed Millage Rate
July 28, 2004
Page 8
Using the proposed tax rates, that value is then taxed as follows:
Taxing
Jurisdiction
Proposed
@ 7.299
0.126
0.748
8.173
Operating
Capital Replacement
Debt Service
Miami Beach
Miami-Dade County
School Board
Other
$27.23
22.53
(19.21)
$31.05
27.51
(1.36)
2.78
Operating
Capital Replacement
Debt Service
Totals
$ 59.98
At the combined proposed millage rate of 8.173, the total dollars for Operating, Capital
Replacement and Renewal, and Debt Service paid to the City when compared to the prior
year's taxable value of $200,000 and 8.173 millage rate, would increase by $31.05. The
overall taxes would increase by $59.98. This, of course, assumes that the other taxing
jurisdictions adopt these millages.
BUDGET RECOMMENDATION
The Administration recommends that you adopt the operating millage rate of 7.425 mills
(includes 0.126 for Capital Replacement & Renewal) and 0.748 mills for debt service,
which will maintain current basic service levels, fund operational costs for projects as they
come on-line, fund enhanced service levels as possible and dedicate funds for Capital
Replacement and Renewal. 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
2004/05 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 1 st). Other
guidelines 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; and 2) if ona day other than Saturday, the public hearing must be after 5:00 P.M.
FY 2004/05 Proposed Millage Rate
July 28, 2004
Page 9
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 and 12
September 7 and 20
September 8
Sundays
Miami-Dade County Public Hearings
Miami-Dade County School Board Public Hearing
The first public hearing will be set for 5:01 P.M., date to be announced at the July 28,2004
Commission Meeting, in the City Commission Chambers, City Hall, 1700 Convention
Center Drive, Miami Beach, Florida.
I wish to take this opportunity to thank Kathie G. Brooks, OBPI Director; the Office of
Management and Budget; Patricia D. Walker, Chief Financial Officer; 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.
JMG:PDW:JC