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99-23276 RESO RESOLUTION NO. 99-23276 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING A TENTATIVE AD VALOREM MILLAGE OF 7.499 MILLS FOR GENERAL OPERATING PURPOSES, WHICH IS FIVE AND FOUR TENTHS PERCENT (5.4%) GREATER THAN THE "ROLLED-BACK" RATE OF 7.112 MILLS, AND 1.199 MILLS FOR DEBT SERVICE FOR THE CITY, FOR FISCAL YEAR 1999/00, SUBJECT TO A SECOND PUBLIC HEARING AT 5:01 P.M., WEDNESDAY, SEPTEMBER 22, 1999. BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, that, pursuant to Section 200.065, Florida Statutes, there is hereby levied a tax for the Fiscal Year (FY) 1999/00 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) F or the purpose of operating the government of the City, the rate assigned amounts to 7.499 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 five and four tenths percent (5.4%) greater than the "Rolled-back" rate of7.112 mills. (b) For the purpose of providing payment on the principal and interest portions of the General Obligation Bond Debt outstanding, the rate assigned amounts to 1.199 mills. (c) The tentative adopted millage rates for the City of Miami Beach, Florida for FY 1999/00 is subject to a second and final public hearing at 5:01 p.m., Wednesday, September 22, 1999, in the City Commission Chambers, City Hall, 1700 Convention Center Drive, Miami Beach, Florida. PASSED and ADOPTED this 13th day of September. 1999. rift MAYOR ATTEST: (4u V~ CITY CLERK APPROVED I>S TO FOR/v\ & LAt"GUAC,E & FOR EXECUTIC: ..~ 1Jvf~ ~ Ciiy AttorlWf Dote It '\ :ITY OF MIAMI BEACH TY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 'p :\\ci. m iam i-beach. fl. us COMMISSION MEMORANDUM NO. ~ TO: Mayor Neisen O. Kasdin and Members of the City mmission DATE: September 13, 1999 FROM: Sergio Rodriguez City Manager SUBJECT: A RESOL TION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING: 1) THE TENTATIVE AD VALOREM MILLAGE OF 7.499 MILLS FOR GENERAL OPERATING PURPOSES WHICH IS FIVE AND FOUR TENTHS PERCENT (5.4%) GREATER THAN THE "ROLLED-BACK" RATE OF 7.112 MILLS; 2) THE DEBT SERVICE MILLAGE RATE OF 1.199 MILLS; AND 3) SETTING 5:01 P. M., WEDNESDAY, SEPTEMBER 22, 1999, FOR THE SECOND PUBLIC HEARING TO CONSIDER THE MILLAGE RATE AND BUDGET FOR FISCAL YEAR 1999/00. ADMINISTRATION RECOMMENDATION The Administration recommends that the City Commission adopt the attached Resolution which sets the following: 1) Tentatively adopted millage rates for Fiscal Year (FY) 1999/00 General Operating Debt Service Total 7.499 mills 1. 199 mills 8.698 mills ( 7.499 last year) ( 1.484 last year) ( 8.983 last year) 2) The tentatively adopted combined millage rate of8.698 mills is .285 mills or 3.2% less than the 8.983 combined millage rate for FY 1998/99. While the tentatively adopted millage rate of 7.499 mills for FY 1999/00 is the same as the rate for FY 1998/99, state statute requires that we advertise that this rate is 5.4% greater than the "Rolled-back" rate of 7.112 mills. 3) The second public hearing to consider the final millage rates and budgets for FY 1999/00 shall be at 5:01 P.M., Wednesday, September 22, 1999 in the City Commission Chambers, City Hall, 1700 Convention Center Drive. AGENDA ITEM RlA~ 9~ /3-crCJ DATE Tentative Operating and Debt Service Millages September 13, 1999 Page 2 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 1999/00 operating purposes. This is accomplished by adopting a Resolution that includes the percentage increase or decrease over the "Rolled-back" rate; the required Debt Service millage rate; and, the date, time. and place of the second public hearing. In prior years, we were mandated to read this Resolution aloud, in its entirety. However, a recent change in state statute requires that only the title be read aloud. 2. Adopt a tentative general operating budget for FY 1999/00. Also included, are budgets for the Enterprise and Internal Service Funds. This is accomplished by adopting a companion Resolution. (See accompanying Agenda Item R 7 A2). Both the millage and budget Resolutions must be adopted again after a second and final public hearing. Procedurally, a millage either greater than or less than 7.499 mills may be adopted at this first hearing. However, any millage rate adopted at the end of either the first or second public hearings which exceeds the millage rate of 7.499 mills established in July, 1999, and certified to the Property Appraiser, would require mailing of a revised notice of property taxes to each taxpayer. The notice would be prepared by the Property Appraiser. at the expense of the taxing authority. and must precede the final hearing by 10 to 15 days. ANAL YSIS OF PROPERTY VALUES IN MIAMI BEACH On July 1, 1999, the City received the "1999 Certification of Taxable Value" from the Miami-Dade County Property Appraiser. It stated that the preliminary gross taxable value of both real and personal property 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 gross taxable value of $6,868,821,231. Alternately, the increase is 10 percent over 1998's preliminary gross taxable value of$6,964,723,252. The difference of$95,902,021 between 1998's preliminary and final values represents the equalization loss of 1.5 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. Tentative Operating and Debt Service Millages September 13, 1999 Page 3 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. The $55,430,546 represents an increase of $5,724,084 from the prior year levy of $49,706,462, reflecting a 11.5 percent 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. 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 lnc/(Dec) , General Operating 7.499 7.499 0.000 $49.706.462 $55,430,546 $5,724.084 Debt Service 1.484 1.199 10.285) 9 836.563 8.862.678 1973.885) TOTAL 8.983 8.698 (0.285) $59,543,025 $64,293,224 $4.750.199 If these proposed tax rates are adopted, then the combined tax rate will decrease by 0.285 mills, or 3.2 percent 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%). Tentative Operating and Debt Service Millages September 13, 1999 Page 4 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 proposed millage rates for FY 1999/00 will decrease the Miami Beach portion of the tax bill to 32.9 percent based on tax rates announced by other jurisdictions. Revised FY 1999/00 tax rates may be considered by Miami-Dade County in September. The countywide tax rate will increase by 0.182 mills from 6.023 to 6.205 mills; the County's debt service will decrease by 0.021 mills from 0.837 to 0.816 mills. The Library District has been announced at 0.334, the same as current year. 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 has announced its proposed tax rate at 9.644 subject to a second public hearing on September 8, 1999. The rate represents a decrease of 0.516 mills from 10.160 to 9.644 mills. 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 32.9 General Operating 7.499 7.499 0.000 0.00 Debt Service 1.484 1.199 (0.285) (19.20) Dade County 27.8 Countywide Operating 6.023 6.205 0.182 3.02 Library 0.334 0.334 0.000 0.00 Debt Service 0.837 0816 (0021) (2.51) School Board 10.160 9.644 (0.516) (5.08) 365 Other 0.744 0.744 0.000 0.00 2.8 Totals 27.081 26.441 (0.640) (2.36) 100.0 Tentative Operating and Debt Service Millages September 13, 1999 Page 5 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 consumer 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: assuming that the average residential property in Miami Beach was valued at $200,000, that value is increased by the 1.6 percent 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) 51.71 (59.44) 2.38 Totals ($27.39) 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 $27.39. This, of course, assumes that the other taxing jurisdictions adopt these millages. SECOND PUBLIC HEARING The second public hearing on the tentatively adopted millage rate and budget for FY 1999/00 must be held no later than 15 days after the first public hearing. It is recommended that the second public hearing be set for 5:01 P.M., Wednesday, September 22, 1999 in the City Commission Chambers, City)-lall, 1700 Convention Center Drive. CONCLUSION The Administration recommends adoption of the attached Resolution which sets both tentative operating and debt service millage rates for FY 1999/00 and establishes a second public hearing to be held on S~ber 22,1999, at 5:01 P. M. SiJP.D.W:16. J() . .