HomeMy WebLinkAbout2006-26309 Reso
RESOLUTION NO. 2006-26309
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ADOPTING: 1) THE TENTATIVE AD
VALOREM MILLAGE OF 7.374 MILLS FOR GENERAL OPERATING
PURPOSES, WHICH IS TWENTY FIVE AND SIX TENTHS PERCENT
(25.6%) GREATER THAN THE "ROLLED-BACK" RATE OF 5.872 MILLS;
AND 2) THE DEBT SERVICE MILLAGE RATE OF 0.299 MILLS;
FURTHER SETTING THE SECOND PUBLIC HEARING TO CONSIDER
THE MILLAGE RATE FOR FISCAL YEAR 2006/07, ON THURSDAY,
SEPTEMBER 21,2006 AT 5:01 P. M.
WHEREAS, on July 12, 2006, the City Commission following a duly noticed public
hearing, adopted Resolution No. 2006-26239, which set the proposed millage rates at 7.374
mills for general operating purposes, and 0.299 mills for debt service; and
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 2006/07 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, at this time the Administration would recommend that the City
Commission set the second and final public hearing to consider the afore stated millage rates
for Fiscal Year 2006/07.
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) 2006/07, 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 7.374 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 five and six tenths percent (25.6%)
greater than the "Rolled-back" rate of 5.872 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 0.299 mills.
(2) The tentative adopted millage rates for the City of Miami Beach, Florida for
FY 2006/07 are subject to a second and final public hearing, herein set for and to be
held at 5:01 p.m., Thursday, September 21,2006, in the City Commission Chambers,
City Hall, 1700 Convention Center Drive, Miami Beach, Florida.
David Dermer
ATTEST:
~r~~
CITY CLERK
Robert Parcher
--
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
~b~
Date
COMMISSION ITEM SUMMARY
Condensed Title:
A resolution of the Mayor and City Commission of The City of Miami Beach, Florida, adopting: 1) the
tentative Ad Valorem Millage of7.374 mills for general operating purposes, which is twenty five and six
tenths percent (25.6%) greater than the "Rolled-Back" Rate of 5.872 mills; and 2) the debt service millage
rate of 0.299 mills; further setting the second public hearing to consider the millage rate for Fiscal Year
2006/07, on Thursday, September 21,2006 at 5:01 P. M.
Ke Intended Outcome Su orted:
Ensure expenditure trends are sustainable over the long term
Improve the City's overall financial Health and maintain overall bond rating
Increase Communi Satisfaction withCi Services
Issue:
Shall the Mayor and City Commission adopt the attached resolution which sets the tentative millage and
sets the date for the second public hearing.
Item Summary/Recommendation:
The Proposed FY 2006/07 General Fund Operating Budget (Proposed General Fund Budget), net of the
Redevelopment Agency (RDA), totals $237.7million and reduces the overall combined millage rate from
8.073 to 7.673, an unprecendented reduction of 0.4 mills. It also reserves 0.182 mills for Capital Renewal
and Replacement needs. In addition, the debt service payment for FY 2006/07 requires a tax rate of 0.299
mills. This translates to a reduction in taxes paid to the City of Miami Beach by $30.75 for the average
homesteaded property owner and an overall annual savings of $15.15 based on rates proposed by other
taxing jurisdictions, where providing service enhancements to address the priorities of the community and
continuing structural changes.
Advisory Board Recommendation:
I
Financial Information:
OBPI
Financial Impact Summary:
Source of
Funds:
Cd
City Clerk's Office Legislative Tracking:
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MIAMI BEACH
AGENDA ITEM
DATE
R'7AI
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MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
FROM:
Mayor David Dermer and Members of the City Commission
Jorge M. Gonzalez, City Manager ~ ~
September 6, 2006 U
TO:
DATE:
SUBJECT:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ADOPTING: 1) THE TENTATIVE AD VALOREM
MILLAGE OF 7.374 MILLS FOR GENERAL OPERATING PURPOSES, WHICH
IS TWENTY FIVE AND SIX TENTHS PERCENT (25.6%) GREATER THAN THE
"ROLLED-BACK" RATE OF 5.872 MILLS; AND 2) THE DEBT SERVICE
MILLAGE RATE OF 0.299 MILLS; FURTHER SETTING THE SECOND
PUBLIC HEARING TO CONSIDER THE MILLAGE RATE FOR FISCAL YEAR
2006/07, ON THURSDAY, SEPTEMBER 21,2006 AT 5:01 P. M.
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) 2006/07
General Operating
Capital Renewal & Replacement
Total Operating Millage
7.192 mills
0.182 mills
7.374 mills
( 7.299 last year)
( 0.182 last year)
( 7.481 last year)
( 0.592 last year)
( 8.073 last year)
Debt Service
Total
0.299 mills
7.673 mills
2) The tentatively adopted combined millage rate of 7.673 mills is four tenths of a mill
less than the 8.073 combined millage rate for FY 2005/06. The tentatively adopted
operating millage rate for FY 2006/07 is 7.374 mills. State statute requires that we
advertise that this rate is 25.6 % greater than the "Rolled-back" rate of 5.872 mills.
3) The second public hearing to consider the final millage rates and budgets for FY
2006/07 shall be on Thursday, September 21, 2006 at 5:01 P.M., 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:
1. Adopt a tentative ad valorem millage rate for FY 2006/07 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 2006/07. 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 7.374 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 7.374 mills established on July 12, 2006,
and certified to the Property Appraiser, would require mailina of a revised notice of
property taxes to each taxpayer. The notice would be prepared bv the Property
Appraiser. at the expense of the taxinQ authority.
ANALYSIS OF PROPERTY VALUES IN MIAMI BEACH
On June 30, 2006, the City received the "2006 Certification of Taxable Value" from the
Miami-Dade County Property Appraiser. It stated that the preliminary taxable value of both
real and personal property for the City of Miami Beach is $22,739,947,828, including
$785,995,928 in new construction.
The preliminary 2006 value represents an increase of $5.5 billion or 32 percent over 2005's
final value of $17,231,010,766, the largest increase this City has experienced in its recent
history. Alternately, the increase is $5.3 billion or 30.3 percent over 2005's preliminary value
of $17,445,766,574. The difference of $214,755,808 between 2005's preliminary and final
values represents the equalization loss of less than 1.2 percent due to appeals, etc.
The comparative assessed values for the Miami Beach Redevelopment Agency City Center
redevelopment district increased from $2,270,499,203 to $3,003,565,939, an increase of
$733,066,736, or a 32.3% increase in values over 2005 values. In addition, assessed
values within the geographic area formerly known as the South Pointe redevelopment district
increased from $2,174,516,070 to $2,905,687,850, an increase of $731,171,780, or a 33.6%
increase in values over 2005 values.
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 for each mill is determined by the
2006 Certification of Taxable Value and has been set at $22,739,948. 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 $21,944,050.
Based on preliminary budget estimates, the millage rate of 7.374 mills will be sufficient to
fund the current, service level as it presently exists, service enhancements desired by the
community and structural enhancements into the next year. It also reserves 0.182 mills for
Capital Renewal and Replacement needs.
The proposed millage rate of 7.192 mills for general City operations will generate ad valorem
tax revenues of $157.8 million, $35 million more than the prior year levy of $122.9 million,
reflecting a 28% increase. This increase is net of $2.35 million due to the decrease in the
millage for general operations from 7.299 mills, a decrease of 0.107 mills.
Of the total citywide ad valorem tax revenues of $157.82 million, $18.52 million will be
transferred to the Redevelopment Agency for the City Center Redevelopment district for a
net of $139.3 million. Further $7.72 million of the $139.3 million is restricted for operating
expenditures within the geographic area formerly known as South Pointe redevelopment
district and an additional $2.52 is transferred for capital projects within that geographic area.
The net result is an increase in the General Fund ad valorem revenue available for use
Citywide from $101.45 million to $129.06 million, an increase of $27.61 million, or a 27%
increase in General Fund ad valorem revenue available for use Citywide.
DETERMINING THE DEBT SERVICE MILLAGE LEVY
The debt service payment for FY 2006/07 is $6,561,271 and requires a tax rate of 0.299
mills. This rate is 0.293 mills, or forty-nine and a half percent (49.5%) less than the FY
2005/06 rate of 0.592 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 2005/06 (final) and FY 2006/07 (preliminary) including RDA.
Tax Rate Tax Levy
FY 5/06 FY 06/07 Inc/(Dec FY 05/06 FY 06/07 Inc/(Dec)
General Operating 7.481 7.374 (0.107) $124,393,514 $161,815,425 $37,421,911
Debt Service 0.592 0.299 (0.293) 9.843.732 6.561.271 (3.282.461 )
TOTAL 8.073 7.673 (0.400) $134,237,246 $168,376,696 $34,139,450
If these recommended tax rates are tentatively adopted, then the combined tax rate will
decrease by 0.400 mills as compared to the current year. The operating millage for Capital
Renewal and Replacement will remain the same, and debt service millage will decrease by
0.293 mills.
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 2005/06, the Miami Beach portion of the total
tax bill was 33.2 percent. The proposed millage rates for FY 2006/07 will place the
Miami Beach portion of the tax bill to 32.8 percent based on tax rates announced by
other jurisdictions.
Revised FY 2006/07 tax rates may be considered by Miami-Dade County on September 7
and 20, 2006. The countywide tax rate is proposed to decrease to 5.720 mills; the County's
debt service is proposed to 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 0.422 mills; a decrease of 0.007 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 $30 million durina FY 2005/06 in tax-increment funds for the Redevelopment
Aaency and the South Pointe area.
The Miami-Dade County School Board is scheduled to discuss its final tax rate on
September 13, 2006, but has tentatively announced a rate of 8.105 mills; a decrease of
0.333 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 05/06 FY 06/07 Inc/(Dec) Change Total
Miami Beach 32.8
General Operating 7.299 7.192 (0.107 (1.5)
Capital Renewal & Replacement 0.182 0.182 0.000 0.0
Debt Service 0.592 0.299 (0.293) (49.5)
Miami-Dade County 29.5
Countywide Operating 5.835 5.720 (0.115) (2.0)
Library 0.486 0.486 0.000 0.0
Children's Trust 0.429 0.422 (0.007) (1.6)
Debt Service 0.285 0.285 0.000 0.0
School Board 8.438 8.105 (0.333) (3.9) 34.6
Other 0.736 0.736 0.000 0.0 3.1
Totals 24.282 23.427 (0.855) (3.5) 100.0
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 2006, the CPI has
been determined to be 3.4% and therefore, the increase is capped at 3% for increased
values as of January 1, 2006. 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 $239,990, that value is increased by the 3 % to a new value of$247,190. The
homestead exemption of $25,000 is then deducted, yielding a taxable value of $222,190.
Using the proposed tax rates, the changes in taxes paid is estimated as follows:
Changes in Tax Millage & Assessment to "Average Homeowner"
Taxing Jurisdiction FY 2006/07
Chan es
Taxes
City of Miami Beach
Operating
Capital Renewal & Replacement
Debt Service
Total Savin s
Other Jurisdictions:
Miami-Dade County
School Board
Other
Total increase to Coun ,School Board and Others
Total Combined Chan e
At the combined proposed millage rate of 7.673, the total dollars for both operating and debt
service paid to the City when compared to the prior year's taxable value of $239,990 and
8.073 millage rate, would decrease by $30.75. The overall taxes would decrease by $15.15.
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
2006/07 must be advertised no later than 15 days after the first public hearing. It is
recommended that the second public hearing be set for Thursday, September 21, 2006 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 2006/07 and establishes a second
public hearing to be held on Thursday, September 21, 2006, at 5:01 P. M.
JMG:KGB:JC
T:\AGENDA\2006\sep0606\Regular\07 A 15tPubMillage.doc