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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 ;..; t'!' . Robert Par~her APPROVED NJ TO FORM & LANGUAGE & FOR EXECUnON ~~.;,. #z~:/r - OS. CITY OF. MIAMI BEACH COMMISSION ITEM SUMMARY m 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 ~ -i-OS- 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. JMG:i:JC~ LIl o o N .,; N I- Vl ~ .., ~ ~ > <( o <J) c: ~ :I: I- o ...J <( c: w :I: w :I: I- E o u -0 0; ~ .I: ~ ~ ~ ~ lQ ,..,. 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 '.