HomeMy WebLinkAbout2005-25993 Reso
RESOLUTION NO. 2005-25993
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ADOPTING: 1) THE TENTATIVE AD
VALOREM MILLAGE OF 7.481 MILLS FOR GENERAL OPERATING
PURPOSES, WHICH IS TWENTY AND EIGHT TENTHS PERCENT
(20.8%) GREATER THAN THE "ROLLED-BACK" RATE OF 6.191 MILLS;
AND 2) THE DEBT SERVICE MILLAGE RATE OF 0.592 MILLS;
FURTHER SETTING THE SECOND PUBLIC HEARING TO CONSIDER
THE MILLAGE RATE FOR FISCAL YEAR 2005/06, ON WEDNESDAY,
SEPTEMBER 21,2005 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 2005/06 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 27, 2005, the City Commission following a duly noticed public
hearing, adopted Resolution No. 2005-25971, which set the proposed millage rates at 7.481
mills for general operating purposes, and 0.592 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 2005/06.
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 for the
Fiscal Year (FY) 2005/06, 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 7.481 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 twenty and eight tenths percent (20.8%)
greater than the "Rolled-back" rate of 6.191 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 0.592 mills.
(2) The tentative adopted millage rates for the City of Miami Beach, Florida for FY
2005/06 are subject to a second and final public hearing, herein set for and to be held
at 5:01 p.m., Wednesday, September 21,2005, in the City Commission Chambers,
City Hall, 1700 Convention Center Drive, Miami Beach, Florida.
PASSED and ADOPTED this 8th day of Se temb
MAYOR
David Dermer
ATTEST:
,tLltw4- reM- ~
CITY CLERK
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Robert Par~her
APPROVED NJ TO
FORM & LANGUAGE
& FOR EXECUnON
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CITY OF. MIAMI BEACH
COMMISSION ITEM SUMMARY
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Condensed Title:
A resolution of the Mayor and City Commission of The City of Miami Beach, Florida, adopting: 1)
the tentative Ad Valorem Millage of 7.481 mills for general operating purposes, which is twenty
and eight tenths percent (20.8%) greater than the "Rolled-Back" Rate of 6.191 mills; and 2) the
debt service millage rate of 0.592 mills; further setting the second public hearing to consider the
millage rate for Fiscal Year 2005/06, on Wednesday, September 21,2005 at 5:01 P. M.
Issue:
Shall the Mayor and City Commission adopt the attached resolution which sets the tentative
millage and sets the date for the second public h~aring.
Item Summary/Recommendation:
The Mayor and City Commission should adopt the attached resolution which sets the tentative
millage and sets the date for the second public hearing.
Advisory Board Recommendation:
I
Financial Information:
Source of
Funds:
IFin~J
City Clerk's Office Legislative Tracking:
I
AGENDA ITEM
DATE
R7AI
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CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http:\\ci,miami-beach,fI,us
COMMISSION MEMORANDUM
TO:
FROM:
Mayor David Dermer and DATE: September 8, 2005
Members of the City Commission
Jorge M. Gonzalez ~,~
City Manager U"- U
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ADOPTING: 1) THE TENTATIVE AD
VALOREM MILLAGE OF 7.481 MILLS FOR GENERAL OPERATING
PURPOSES, WHICH IS TWENTY AND EIGHT TENTHS PERCENT
(20.8%) GREATER THAN THE "ROLLED-BACK" RATE OF 6.191 MILLS;
AND 2) THE DEBT SERVICE MILLAGE RATE OF 0.592 MILLS;
FURTHER SETTING THE SECOND PUBLIC HEARING TO CONSIDER
THE MILLAGE RATE FOR FISCAL YEAR 2005/06, ON WEDNESDAY,
SEPTEMBER 21,2005 AT 5:01 P. M.
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) 2005/06
General Operating
Capital Renewal & Replacement
Total Operating Millage
Debt Service
Total
7.299 mills ( 7.299 last year)
0.182 mills ( 0.126 last year)
7.481 mills ( 7.425 last year)
0.592 mills ( 0.748 last year)
8.073 mills ( 8.173 last year)
2) The tentatively adopted combined millage rate of 8.073 mills is one tenth of a mill less
than the 8.173 combined millage rate for FY 2004/05. The tentatively adopted
operating millage rate for FY 2005/06 is 7.481 mills. State statute requires that we
advertise that this rate is 20.8 % greater than the "Rolled-back" rate of 6.191 mills.
3) The second public hearing to consider the final millage rates and budgets for FY
2005/06 shall be on Wednesday, September 21, 2005 at 5:01 P.M., in the City
Commission Chambers, City Hall, 1700 Convention Center Drive.
Tentative Operating and Debt Service Millages
September 8, 2005
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 2005/06 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 2005/06. 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 7.481 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 7.481 mills established on July 27, 2005, and
certified to the Property Appraiser, would require mailinCl of a revised notice of property
taxes to each taxpayer. The notice would be prepared by the Property Appraiser, at the
expense of the taxinCl authority.
ANALYSIS OF PROPERTY VALUES IN MIAMI BEACH
On July 1,2005, the City received the "2005 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 $17,445,766,574, including $825,278,283
in new construction, which is the largest increase this City has experienced in its recent
history.
The preliminary 2005 value represents an increase of 25.9 percent over 2004's final value of
$13,858,100,123. Alternately, the increase is 24.3 percent over 2004's preliminary value of
$14,040,817,181. The difference of $182,717,058 between 2004's preliminary and final
values represents the equalization loss of less than 1.3 percent due to appeals, etc.
The comparative assessed values for the Miami Beach Redevelopment Agency City Center
redevelopment district increased by $637,300,244 or 39.0 percentfrom $1 ,633,198,959
to $2,270,499,203. In addition, assessed values within the geographic area formerly known as
the South Pointe redevelopment district increased from $1 ,727,803,898 to $2,474,516,070, an
increase of $446,712,172, or a 25.9% increase over 2004 values.
Tentative Operating and Debt Service Millages
September 8, 2005
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 2005 Certification
of Taxable Value and has been set at $17,445,767. 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 $16,835,165.
The proposed millage rate of 7.481 mills will be sufficient to fund a current, basic service level as
it presently exists, and service enhancements desired by the community, into the next year. It
also reserves 0.182 mills for Capital Renewal and Replacement needs. The proposed millage
rate includes 7.299 mills for general City operations will generate ad valorem tax revenues of
$122.9 million, $24 million more than the prior year levy of $98.9 million, reflecting a 24.3%
increase. Of the total citywide ad valorem tax revenues of $122.9 million, $13.7 million will be
transferred to the Redevelopment Agency for the City Center Redevelopment district for a net of
$109.2 million. $7.7 million of the $109.2 million is restricted for expenditures within the
geographic area formerly known as South Pointe redevelopment district for net ad valorem
revenue of $101.5 million in the General Fund available for use Citywide.
DETERMINING THE DEBT SERVICE MILLAGE LEVY
The debt service payment for FY 2005/06 is $9,966,418 and requires a tax rate of 0.592 mills.
This rate is 0.156 mills, or twenty and nine tenths percent (20.9%) less than the FY 2004/05 rate
of 0.748 mills. The decrease in millage of 0.156 mills is proposed to be dedicated to reduce the
overall millage by 0.100 mills and the remaining 0.056 mills for Capital Renewal and
Replacement.
COMBINING THE OPERATING AND DEBT SERVICE MILLAGE LEVIES
Illustrated below is a comparison of the combined millage rates and ad valorem revenues to the
Cit
y of Miami Beach for FY 2004/05 (final) and FY 2005/06 (preliminary) including RDA.
Tax Rate Tax Levy
FY 04/05 FY 05106 Incl(Dec) FY 04/05 FY 05106 Inc/(Dec )
General Operating 7.425 7.481 0.056 $99,295,022 $125,943,869 $ 26,648,847
Debt Service 0.748 0.592 (0.156) 10.003.054 9.966.418 06.636)
TOTAL 8.173 8.073 (0.100) $109,298,076 $135,910,287 $26,612,211
If these recommended tax rates are tentatively adopted, then the combined tax rate will
decrease by 0.100 mills as compared to the current year. The operating millage for Capital
Renewal and Replacement will increase by 0.056 mills, and debt service millage will decrease
by 0.156 mills.
Tentative Operating and Debt Service Millages
September 8,2005
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 2004/05, the Miami Beach portion of the total tax bill
was 33.03 percent. The proposed millage rates for FY 2005/06 will place the Miami Beach
portion of the tax bill to 33.2 percent based on tax rates announced by other jurisdictions.
Revised FY 2005/06 tax rates may be considered by Miami-Dade County on September 6,
2005. The countywide tax rate will decrease to 5.867 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.
The Children's Trust has tentatively announced a rate of 0.431 mills; a decrease of 0.011 mills.
While it is not possible to determine the exact amount returned in additional services. it should
be noted that Miami-Dade County returned approximately $17 million durinQ FY 2004/05 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 7,
2005, but has tentatively announced a rate of 8.438 mills; a decrease of 0.249 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 04/05 FY 05/06 Inc/(Dec) Change Total
Miami Beach 33.2
General Operating 7.299 7.299 0.000 0.0
Capital Renewal & Replacement 0.126 0.182 0.056 44.4
Debt Service 0.748 0.592 (0.156) (20.9)
Miami-Dade County 29.1
Countywide Operating 5.935 5.867 ( 0.068) (1.2)
Library 0.486 0.486 0.000 0.0
Children's Trust 0.442 0.431 ( 0.011) (2.5)
Debt Service 0.285 0.285 0.000 0.0
School Board 8.687 8.438 (0.249) (2.9) 34.7
Other 0.736 0.736 0.000 0.0 3.0
Totals 24.744 24.316 (0.428) (1.7) 100.00
Tentative Operating and Debt Service Millages
September 8, 2005
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 2005, the CPI has been determined to
be 3.3 percent and therefore, the increase is capped at 3 % for increased values as of January
1, 2005. 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 $233,000, that
value is increased by the 3 % percent to a new value of $239,990. The homestead exemption
of $25,000 is then deducted, yielding a taxable value of $214,990.
Using the proposed tax rates, that value is then taxed as follows:
Taxing Proposed
Jurisdiction @ 7.299 Operating
0.182 Capital Renewal & Replacement
0.592 Debt Service
8.073
Miami Beach
$51.02 Operating
12.92 Capital Renewal & Replacement
(28.31) Debt Service
$35.63
32.96
7.19
5.14
$80.92
Miami-Dade County
School Board
Other
Totals
At the combined proposed millage rate of 8.073, the total dollars for both operating and debt
service paid to the City when compared to the prior year's taxable value of $233,000 and
8.173 millage rate, would increase by $35.63. The overall taxes would increase by $80.92.
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 2005/06
must be advertised no later than 15 days after the first public hearing. It is recommended that
the second public hearing be set for Wednesday, September 21,2005 at 5:01 P.M., in the City
Commission Chambers, City Hall, 1700 Convention Center Drive.
CONCLUSION
The Administration recommends adoption ofthe attached Resolution which sets both tentative
operating and debt service millage rates for FY 2005/06 and establishes a second public
hearing to be held on Wednesday, September 21, 2005, at 5:01 P. M.
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NOTICE IS HEREBY given that Rublic hearings will be held by the Mayor
and City Commission of the City of Miami Beach, Florida, in fhe
Commission Chambers, 3rd floor, City Hall, '1700 Convention Center Drive,
Miami Beach, Florida, on Thursday, September 8, 2005, to consider the
following:
CITY OF MIAMI BEACH
NOTICE OF PUBLIC HEARING
10:15a.m. ,
An Ordinance Amending Miami Beach City Code Chap-ter 38 Entitled
"Elections," By Creating Section 38-6 "Early Voting"; Exempting City
Ma~oral And Commission Elections From The Provisions Of Paragraph
(1) ) Of Section 101.657, Florida Statutes, Concerning Early Voting And
Ins ead Authorizing A Shortened Duration For Early Voting For City
Mayoral And Commission Elections.
Inquiries may be directed to the City Clerk's office at (305) 673-7411.
~~J ~'IWST PUBLIC HEARING ADOPTING THE PROPOSED MILEAGE'
RATE AND BUDGET FOR FISCAL YEAR 2005/2006 FOR THE CITY OF
MIAMI BEACH.
5:02 p.m.
THE FIRST PUBLIC HEARING ADOPTING THE PROPOSED MILEAGE
RATE AND BUDGET FOR FISCAL YEAR 2005/2006 FOR THE
NORMANDY SHORES LOCAL' GOVERNMENT NEIGHBORHOOD
IMPROVEMENT DISTRICT.
Inquiries may be directed to the Budget Office at (305) 673-7510.
INTERESTED PARTIES are invited to appear at this meeting, or be
represented by an agent, or to express their views in writing addressed to
the City Commission, c/o the City Clerk; 1700 Convention Center Drive,
1 st Floor, City Hall, Miami Beach, Florida 33139. Copies of these
ordinances are available for public inspection during normal business
hours in the Ci1Y Clerk's.Office, 1700 Convention Cenfer Drive, 1st Floor,
City Hall, and Miami Beach, Florida 33139. This meeting may be continued
ana under such circumstances additional legal notice would not be
provided.
Robert E. Parcher, City Clerk
City of Miami Beach
Pursuant to Section 286.0105, Fla. Stat., the City hereby advises the
p-ublic that: if a person decides to appeal any decision maae by the City
Commission with respect to any matter considered at its meeting or its
hearing, such person must ensure that a verbatim record of the
proceeaings is made, which record includes the testimony alid evidence
upon whicn the appeal is to be based. This notice does not constitute
consent by the City for the introduction or admission of otherwise
inadmissible or irrelevant evidence, nor does it authorize challenges or
appeals not otherWise allowed by law.
To request this material in accessible format, sign language interpreters,
information on access for persons, with oisabilities, and/or any
accommodation to review any document or participate in any city-
sRonsored Rroceeding, please contact (305) 604-2489 (voice), (305)673-
7218(TTY) five days In advance to initiate your request. TTY users may
a.lso call 711 (Floriaa Relay Service).
Ad #325 '.