2004-25684 Reso
RESOLUTION NO. 2004-25684
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ADOPTING: 1) THE TENTATIVE AD
VALOREM MILLAGE OF 7.425 MILLS FOR GENERAL OPERATING
PURPOSES, WHICH IS SEVENTEEN AND SIX TENTHS PERCENT
(17.6%) GREATER THAN THE "ROLLED-BACK" RATE OF 6.314 MILLS;
AND 2) THE DEBT SERVICE MILLAGE RATE OF 0.748 MILLS;
FURTHER SETTING THE SECOND PUBLIC HEARING TO CONSIDER THE
MILLAGE RATE FOR FISCAL YEAR 2004/05, ON TUESDAY, SEPTEMBER
28,2004 AT 5:01 P. M.
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 Fiscal Year 2004/05 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, on July 28, 2004, the City Commission following a duly noticed public
hearing, adopted Resolution No. 2004-25632, which set the proposed millage rates at
7.425 mills for general operating purposes, and 0.748 mills for debt service; and
WHEREAS, at this time the Administration would recommend that the City
Commission set the second and final public hearing to consider the aforestated millage
rates for Fiscal Year 2004/05.
NOW THEREFORE, BE IT 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 forthe
Fiscal Year ( FY) 2004/05, 0 n a II taxable a nd non-exempt real and personal property
located within the corporate limits of the City of Miami Beach, Florida, as follows:
(a) For the purpose of operating the government of the City, the rate
assigned amounts to 7.425 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 seventeen and six tenths percent (17.6%)
greater than the "Rolled-back" rate of 6.314 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 0.748 mills.
(2) The tentative adopted millage rates for the City of Miami Beach, Florida
for FY 2004/05 are subject to a second and final public hearing, herein set for and
to be held at 5:01 p.m., Tuesday, September 28, 2004, in the City Commission
Chambers, City Hall, 1700 Convention Center Drive, Miami Beach, Florida.
PASSED and ADOPTED this 9th day of Se te
MAYOR
ATT.
c~.
ITY CLERK
APPROVED NJTO
FORM &LANGUAGI!
&FOREXECUnON
~ 9';j/,t}Y
Date
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
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Condensed Title:
A Resolution adopting: 1) the tentative ad valorem millage of 7.425 mills for general operating
purposes which is seventeen and six tenths percent (17.6%) greater than the "Rolled-back" rate
of 6.314 mills; 2) the debt service millage rate of 0.748 mills; and 3) setting Tuesday, September
28,2004, at 5:01 p.m., for the second public hearing to consider the millage rate for Fiscal Year
2004/05.
Issue:
Shall the Mayor and City Commission approve the tentative millage, the debt service millage and
set the second public hearing for September 28, 2004?
Item Summary/Recommendation:
The Administration recommends adopting the resolution which sets the FY 2004/05 operating
millage for general operating purposes, debt service millage, and sets the second public hearing
for September 28, 2004.
,AdViSOry Board Recommendation:
Financial Information:
Source of Amount Account Approved
Funds: 1
~ 2
Fin~ c ept. 3
4
Total
City Clerk's Office Legislative Tracking:
I
Si n-Offs:
Department Director
Assistant City Manager
City Manager
AGENDA ITEM
DATE
R7Al
q- ~-o'l
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http:\\ci.miami-beach.f1.us
COMMISSION MEMORANDUM
FROM:
Mayor David Dermer and DATE: September 9,2004
Members of the City Commission
Jorge M. Gonzalez 'p-~
City Manager 0 0
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ADOPTING: 1) THE TENTATIVE AD
VALOREM MILLAGE OF 7.425 MILLS FOR GENERAL OPERATING
PURPOSES, WHICH IS SEVENTEEN AND SIX TENTHS PERCENT
(17.6%) GREATER THAN THE "ROLLED-BACK" RATE OF 6.314 MILLS;
AND 2) THE DEBT SERVICE MILLAGE RATE OF 0.748 MILLS;
FURTHER SETTING THE SECOND PUBLIC HEARING TO CONSIDER
THE MILLAGE RATE FOR FISCAL YEAR 2004/05, ON TUESDAY,
SEPTEMBER 28, 2004 AT 5:01 P. M.
TO:
SUBJECT:
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) 2004/05
Debt Service
Total
7.299 mills ( 7.299 last year)
0.126 mills ( 0.000 last year)
7.425 mills ( 7.299 last year)
0.748 mills ( 0.874 last year)
8.173 mills ( 8.173 last year)
General Operating
Capital Replacement & Renewal
Total Operating Millage
2) The tentatively adopted combined millage rate of 8.173 mills is equal to the 8.173
combined millage rate for FY 2003/04. The tentatively adopted operating millage
rate for FY 2004/05 is 7.425 mills. State statute requires that we advertise that this
rate is 17.6 % greater than the "Rolled-back" rate of 6.314 mills.
3) The second public hearing to consider the final millage rates and budgets for FY
2004/05 shall be on Tuesday, September 28, 2004 at 5:01 P.M., in the City
Commission Chambers, City Hall, 1700 Convention Center Drive.
Tentative Operating and Debt Service Millages
September 9,2004
Page two
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 2004/05 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.
State statute requires that only the title be read aloud.
2. Adopt a tentative general operating budget for FY 2004/05. Also included, are
budgets for the Enterprise and Internal Service Funds. This is accomplished by
adopting a companion Resolution. (See accompanying Agenda Item R7 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 7.425 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 7.425 mills established on July 28, 2004,
and certified to the Property Appraiser, would require mailinQ of a revised notice of
property taxes to each taxpayer. The notice would be prepared by the Property
Appraiser. at the expense of the taxinQ authority.
ANALYSIS OF PROPERTY VALUES IN MIAMI BEACH
On July 1, 2004, the City received the "2004 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 $14,040,817,181,
including $348,941,191 in new construction, which is the largest increase 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 $134,571,293 or 9.0 percent from $1,498,627,666 to $1,633,198,959.
Tentative Operating and Debt Service Millages
September 9,2004
Page three
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.
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 mills 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).
Tax Rate Tax Levy
FY 03/04 FY 04105 Inc/(Dec) FY 03/04 FY 04/05 Inc/(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 10.1 34.942 144.963
TOTAL 8.173 8.173 (0.000) $93,418,877 $110,739,118 $17,320,271
If these recommended tax 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.
Tentative Operating and Debt Service Millages
September 9,2004
Page four
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 ofthe total tax
bill was 32.4 percent. The proposed millage rates for FY 2004/05 will place the Miami
Beach portion of the tax bill to 32.9 percent based on tax rates announced by other
jurisdictions.
Revised FY 2004/05 tax rates may be considered by Miami-Dade County on September 7,
2004. The countywide tax rate will remain at 5.969 mills; the County's debt service will
remain at 0.285 mills. The Library District and the Children's Trust have announced that the
millage will remain at 0.486 mills and 0.500 mills respectively. 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 rate on
September 8, 2004, but has tentatively announced a rate of 8.687 mills; a decrease of
0.413 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 below are the current and proposed tax rates for the multiple taxing authorities.
Adopted Proposed % %of
Taxing Jurisdiction FY 03/04 FY 04/05 Inc/(Dec) Change Total
Miami Beach 32.9
General Operating 7.299 7.299 0.000 0.0
Capital Replacement 0.000 0.126 0.126 100.0
Debt Service 0.874 0.748 (0.126) (14.4)
Miami-Dade County 29.1
Coun~de~ting 5.969 5.969 0.000 0.00
Library 0.486 0.486 0.000 0.00
Children's Trust 0.500 0.500 0.000 0.00
Debt Service 0.486 0.486 0.000 0.00
School Board 9.100 8.687 (0.413) (4.5) 35.0
Other 0.736 0.736 0.000 0.00 3.0
Totals 25.249 24.836 (0.413) (1.64) 100.00
Tentative Operating and Debt Service Millages
September 9,2004
Page five
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 average residential property in
Miami Beach was valued at $200,000, that value is increased by the 1.9 % percent to a
new value of $203,800. The homestead exemption of $25,000 is then deducted, yielding a
taxable value of $178,800.
Using the proposed tax rates, that value is then taxed as follows:
Taxing Proposed
Jurisdiction @ 7.299
0.126
0.748
8.173
Operating
Capital Replacement
Debt Service
Miami Beach
$27.73
22.53
(19.21)
$31.05
27.51
(39.26)
2.78
$22.08
Operating
Capital Replacement
Debt Service
Miami-Dade County
School Board
Other
Totals
At the combined proposed millage rate of 8.173, the total dollars for both operating and
debt service paid to the City when compared to the prior year's taxable value of $200,000
and the same millage rate, would increase by $31.05. The overall taxes would increase by
$22.08. 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
2004/05 must be advertised no later than 1 5 days after t he first public hearing. It is
recommended that the second public hearing be set for Tuesday, September 28, 2004 at
5:01 P.M., in the City Commission Chambers, City Hall, 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 2004/05 and establishes a second
public hearing to be held on Tuesday, September 28,2004, at 5:01 P. M.
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