Loading...
97-22520 RESO RESOLUTION NO. 97-22520 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 FOUR AND TWO TENTHS PERCENT (4.2%) GREATER THAN THE "ROLLED-BACK" RATE OF 7.197 MILLS, AND 1.711 MILLS FOR DEBT SERVICE FOR THE CITY, FOR FISCAL YEAR 1997/98, SUBJECT TO A SECOND PUBLIC HEARING AT 5:01 P.M., WEDNESDAY, SEPTEMBER 24, 1997. BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that, pursuant to Section 200.065, Florida Statutes, there is hereby levied a tax for the Fiscal Year 1997/98, 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) For the purpose of operating the government of the City, the rate assigned amounts to ~ 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 four and two tenths percent (4.2%) greater than the "rolled-back" rate of 7.197 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 ~ mills. (c) The tentative adopted millage rates for the City of Miami Beach, Florida for FY 1997/98 is subject to a second and final public hearing at 5:01 P. M., Wednesday, September 24, 1997, in the City Commission Chambers, City Hall, l700 Convention Center Drive, Miami Beach, Florida. PASSED and ADOPTED this ~ day of An~ ~~ CITY CLERK :\PPROVED AS TO :)RM & lANGUAGE ~ FOR EXECUTION .. Y-2.f7- Date CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\cLmiami-beach.fI.us COMMISSION MEMORANDUM NO. -59..9..:9-1 FROM: Mayor Seymour Gelber and DATE: September 11,1997 Members of the City CliO' si Jose Garcia-Pedrosa City Manager A RESOLUTION ADOPTING: 1) THE TENTATIVE AD VALOREM MILLAGE OF 7.499 MILLS FOR GENERAL OPERATING PURPOSES WHICH IS FOUR AND TWO TENTHS PERCENT (4.2%) GREATER THAN THE "ROLLED BACK II RATE OF 7.197 MILLS; 2) THE DEBT SERVICE MILLAGE RATE OF 1.711 MILLS; AND, 3) SETTING 5:01 P. M., WEDNESDAY, SEPTEMBER 24, 1997, FOR THE SECOND PUBLIC HEARING TO CONSIDER THE MILLAGE RATE AND BUDGET FOR FISCAL YEAR 1997/98. TO: SUBJECT: RECOMMENDATION: The Administration recommends that the City Commission adopt the attached Resolution which sets the following: 1) Tentatively adopted millage rates for General Operating 7.499 mills Debt Service 1.711 mills Total 9.210 mills FY 1997/98 ( 7.499 last ( 1.879 last ( 9.378 last year) year) year) 2) The tentatively adopted millage rate of 7.499 mills is 4.2% greater than the I'rolled-back" rate of 7.197 mills. 3) The second public hearing to consider the final millage rates and budgets for FY 1997/98 shall be at 5:01 P.M., Wednesday, September 24, 1997 in the City Commission Chambers, City Hall, 1700 Convention Center Drive. 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: AGENDA ITEM R~Al q -l\ ,'11- DATE Tentative Operating and Debt Service Millages September 11, 1997 Page -2 - 1. Adopt a tentative ad valorem millage rate for FY 1997/98 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 1997/98. 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-A-2) . 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, 1997, and certified to the Property Appraiser f would require mailing of a revised notice of property taxes to each taxpayer. The notice would be prepared by the Property A~praiser. at the eXDense of the taxing authority. and must Drecede the final hearing by 10 to 15 days. ANALYSIS OF PROPERTY VALUES IN MIAMI BEACH The fundamental building block in developing a municipal budget is the establishment of the value of one mill of taxation. A mill of taxation is defined as $1.00 of ad valorem tax for each $1,000 of property value. It is against this value that the millage rate is applied to determine the total dollars of ad valorem tax available. On July 1, 1997, we received the 1997 Certification of Taxable Value from the Dade County Property Appraiser, containing the assessed real and personal property values in our City. The preliminary, current-year, gross taxable value of both real and Tentative Operating and Debt Service Millages September 11, 1997 Page -3 - personal property for 1997 is $6,463,734,814, including $204,607,776 for new construction which is the single largest increase this City has experienced in its recent history. This represents an increase of 7.6% over the prior year's final gross taxable value of $6,006,809,951. Alternately, the preliminary value for 1997 of $6,463,734,814 exceeds the preliminary 1996 value of $6,114,562,295 by $349,172,519, or 5.7%. Comparing 1996's preliminary value of $6,114,562,295 to its final value of $6,006,809,951 yields a decrease of $107,752,344, or 1.8%. This is attributed to equalization losses and appeals. Amendment 10 to the Florida Constitution, known as "Save Our Homes", was enacted to limit the annual increase in assessed value on homesteaded property to the lesser of three percent (3%) or the Consumer Price Index (CPI). As such, homesteaded property values were capped at 3.0%, the CPI increase, by the Property Appraiser in accordance with Amendment 10. Comparing the two districts within the City, South pointe and City Center, South Pointe received a smaller assessment value increase than City Center. South Pointe increased by $1,987,683, or 0.5%, from $368,619,293 to $370,606,976, whereas; City Center increased by $10,173,949, or 2.0%, from $497,342,509 to $507,516,458. The present value of one mill for the City of Miami Beach has increased from its final value of $6,006,810 in 1996 to its preliminary value of $6,463,735 in 1997. Statutorily, a mill cannot be discounted to any value less than 95%. As permitted by state statute, the City of Miami Beach discounts its mill to 96.5% for a value of $6,237,504. DETERMINING THE OPERATING MILLAGE LEVY AND AD VALOREM TAXES Given the current year's operating budget, directives from the Commission, City boards, committees, residents, and input from the Budget Advisory Committee (BAC), on July 16, 1997, the Commission set the operating millage rate at 7.499 mills which is four and two tenths percent (4.2%) greater than the calculated current year roll-back millage rate of 7.197 mills. This would constitute the third consecutive year in which our City has maintained the same general operating millage rate. The tentative millage rate is 7.499 and will yield $46,775,045 in ad valorem revenues to the General Fund. Comparing this to the current year's proceeds of $44,018,979 shows additional proceeds of $2,756,066 or a 6.3% increase. Tentative Operating and Debt Service Millages September 11, 1997 Page -4 - DETERMINING THE DEBT SERVICE MILLAGE LEVY Debt service millages must be approved by the voters. The debt service rate, which includes the Parks and Recreation Bonds, for FY 97/98 is $10,672,369 and requires a tax rate of 1.711 mills to be fully self supporting and not supplemented by reserves. This represents an overall decrease of 0.168 mills, or eight and nine tenths (8.9%) percent less than the current year's adopted debt service millage rate of 1.879 mills. The balance of unretired debt at September 30, 1997, for General Obligation Bonds for which the full faith and credit of the City is pledged, is $50,505,000. COMBINING OPERATING AND DEBT SERVICE MILLAGE LEVIES The combined millage rate for both operating and debt service for FY 1997/98 is illustrated below, with a comparative analysis between the final FY 1996/97 and the preliminary FY 1997/98 millages. Tax Rate Tax Levy FY 96/97 FY 97/98 Incl(Dec) FY 96/97 FY 97/98 Incl(Dec) General Operating 7.499 7.499 0.000 $44,018,979 $46,775,045 $2,756,066 Debt Service 1.879 1.711 !QJW 11.028.582 1 0.672.369 (356.213) TOTAL 9.378 9.210 (0.168) $55,047,561 $57,447,414 $2,399,853 Should the tentative tax rates be adopted, the combined tax rate will decrease by 0.168 mills, or 1.8% from the previous year as follows: the operating millage will remain constant, and the debt service millage will decrease by 0.168 mills, or eight and nine tenths percent (8.9%). COMBINING JURISDICTIONAL OPERATING AND DEBT SERVICE MILLAGE LEVIES A City of Miami Beach property owner remits taxes to the Tax Collector as a result of levies enacted by the City Commission, the County Commission, the School Board, the South Florida Water Management District (SFWMD), and the Florida Inland Navigation District. In all, five agencies have the authority to levy property taxes on Miami Beach property owners. Miami Beach property owners contributed 37.6 percent in FY 1992/93 of their total tax bill to the City of Miami Beach; this amount decreased to 33.4 percent in FY 1996/97. The balance was levied by the four other jurisdictions. The tentative millage rates for FY 1997/98 will make the Miami Beach portion of a total tax bill 32.8 percent, a decrease of 0.6 percent, assuming that the millage rates shown are adopted by the four other jurisdictions. Tentative Operating and Debt Service Millages September 11, 1997 Page -5 - The table below depicts current and proposed millage rates for all jurisdictions: Adopted Proposed % %of Taxing Jurisdiction Millage Millage Inc/(Dec) Change Total FY 96/97 FY 97/98 Miami Beach 32.8 General Operating 7.499 7.499 0.000 0.0 Debt Service 1.879 1.711 (0.168) (8.94) Dade County 27.5 Countywide Operating 6.469 6.464 (0.005) (0.08) Library 0.339 0.327 (0.012) (3.54) Debt Service 0.774 0.931 0.157 20.28 School Board 10.366 10.466 0.100 0.96 37.2 Other 0.710 0.710 0.000 0.00 2.5 Totals 28.036 28.108 0.072 0.26 100.0 It is to be noted that at the same time that property owners' contribution of a dollar of tax to the City has declined from 37.6 cents in FY 1992/93 to a proposed 32.8 cents in FY 1997/98, the tax contribution to the School Board remains constant at about 37.2 cents out of every tax dollar. The overall tax rate for a Miami Beach homeowner is 28.108 mills, or 0.072 mills greater than the current year -- a minimal increase of 0.26 percent. COMBINED MILLAGE LEVY IMPACT ON THE HOMEOWNER The impact of these combined millages into tax payments for a homesteaded property whose taxable value in 1997 was $119,200 is demonstrated below. This net taxable value assumes that the homeowner has a credit for the $25,000 homestead exemption and that the assessed value of the homesteaded property was limited to a 3.0% increase from the provisions of Amendment 10. Taxing Jurisdiction Tax Bill per$119.200 Miami Beach Dade County School Board Other Totals $19.36 48.53 55.46 2.98 $126.33 At a 7.499 millage rate, the total dollars paid annually for both operating and debt service to the City, when compared to the prior year's taxable value of $115,000 and 7.499 millage rate, would increase by $19.36, or less than $1.62 per month. Tentative Operating and Debt Service Millages September 11, 1997 Page -6 - SECOND PUBLIC HEARING The second public hearing on the tentatively adopted millage rate and budget for Fiscal Year 1997/98 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 24, 1997 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 1997/98 and establishes a second public hearing to be held on September 24, 1997, at 5:01 P. M. JGP:PDW:JC:KRW