2000-24050 RESO
RESOLUTION NO. 2000-24050
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, SETTING THE
PROPOSED MILLAGE RATES FOR FISCAL YEAR (FY)
2000/01, THE CALCULATED "ROLLED-BACK" RATE, AND
THE DATE, TIME, AND PLACE OF THE FIRST PUBLIC
HEARING; FURTHER AUTHORIZING THE CITY
MANAGER TO TRANSMIT THIS INFORMATION TO THE
MIAMI-DADE COUNTY PROPERTY APPRAISER IN THE
FORM REQUIRED BY SECTION 200.065, FLORIDA
STATUTES
WHEREAS, Section 200.065, Florida Statutes, has specified the method by which
municipalities may fix the millage rate and adopt an annual budget; and
WHEREAS, the City of Miami Beach is required to advise the Miami-Dade County Property
Appraiser of the Proposed Millage Rate, the "Rolled-Back" Rate, and the date, time, and place of
the first public hearing.
NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the following
recommendations of the Administration be and are hereby ratified for transmittal to the Miami- Dade
County Property Appraiser, as specified in Section 200.065, Florida Statutes:
I) Proposed Millage Rates for FY 2000101
General Operating
Debt Service
7.3 99 mills
lJiQ mills
8.555 mills
2)
"Rolled-Back" Rate
6.945 mills
3) The first public hearing on the proposed millage rate and the tentative budget for FY 2000101
shall be held on Thursday, September 14, 2000 at 5:01 P.M., in the City Commission
Chambers, City Hall, 1700 Convention Center Drive, Miami Beach, Florida.
PASSED and ADOPTED, this 26th day of.!l.lh:, 2000.
1J:~~
CITY CLERK
#f? MAYOR
APPROVED ItS TO
FORM & LANGUAGE
& FOR EXECUTION
~ ~ 7-26-<:0
Attorney 0...
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http:\\cLmiami-beach.fl.uB
COMMISSION MEMORANDUM NO. ~ S 1-00
TO:
Mayor Neisen O. Kasdin and
Members of the City Commission
DATE: July 26, 2000
FROM:
SUBJECT:
ARE LUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA SETTING 1) THE PROPOSED
OPERATING MILLAGE RATE; 2) THE REQUIRED DEBT SERVICE
MILLAGE RATE; 3) THE CALCULATED "ROLLED-BACK" RATE; AND,
4) THE DATE, TIME, AND PLACE OF THE FIRST PUBLIC HEARING TO
CONSIDER THE MILLAGE RATES AND BUDGETS FOR FISCAL YEAR
(FY) 2000/01; FURTHER AUTHORIZING THE CITY MANAGER TO
TRANSMIT THIS INFORMATION TO THE MIAMI-DADE COUNTY
PROPERTY APPRAISER IN THE FORM REQUIRED BY SECTION
200.065, FLORIDA STATUTES.
SUMMARY
The Administration is recommending the City's operating millage rate at the current rate of 7.499,
and has calculated a decrease of 0.043 in the current debt service millage rate of 1.199 to 1.156.
Although the overall millage will decrease (0.043), due to increases in assessed value there will be
a net increase of$39.21 in the amount of taxes that the average residential homeowner will pay to
the City in the coming fiscal year. The County has announced an overall decrease in the property tax
rate and the School Board will remain the same, but due to increases in assessed values, the
combined impact on the average homeowner in Miami Beach will be an increase of$118.37.
ADMINISTRATION RECOMMENDATION
The Administration recommends that the Mayor and City Commission adopt the attached resolution
which authorizes the City Manager to transmit the following information to the Miami-Dade County
Property Appraiser:
I) Proposed Millage Rates for FY 200010 I:
General Operating
Debt Service
7.499 mills
.L.l2Q mills
8.655 mills
(7.499 last year)
(L.l22 last year)
(8.698 last year)
AGENDA ITEM K7 N
DATE(-'L~-OO
FY 2000101 Proposed Millage Rate
July 26, 2000
Page - 2 -
2) "Rolled-Back" Rate (Truth in Millage)
6.945 mills
3) The first public hearing to consider the proposed millage rates and tentative budgets for FY
2000101 shall be at 5:01 p.m., Thursday, September 14, 2000 in the City Commission
Chambers, City Hall, 1700 Convention Center Drive, Miami Beach, Florida.
DECISION-MAKING PROCESS
The budget development process has included participation from within and from outside City Hall.
A budget briefing was held on June 8th, to inform the Commission and the citizens of preliminary
General Fund revenue projections and department expenditure requests for FY 2000101.
The Budget Advisory Committee (BAC) hosted a citizen forum on June 26, 2000 to gain additional
citizen input regarding the proposed budget. The Administration conducted a Commission
workshop on July 13, 2000, for the purpose of informing both the Commission and the citizens about
the status of the proposed budget. At that workshop, the Administration provided the status of the
budget process to date, and possible budget alternatives for new and enhanced services.
Maintaining the basic service level into FY 200010 I will translate into a total operating budget of
$128,807,074, which is $9,187,174 or 7.7% greater than the amended budget of$119,619,900.
This proposed budget includes new or increased services in the amount of $3.3 million. These
enhancements include funding for quality of life areas through parks maintenance and playground
equipment replacement, two additional lifeguard locations, additional fire and police department
personnel, as well as creation of Community Resource Management and Neighborhoods First Clean
Teams to focus resources on specific areas of the community. Based on the recommendation of the
Business Resolution Task Force, additional funding is provided for enhancement of customer service
in the areas of permitting and plans review. Low cost financing is proposed to replace greatly needed
communications systems and computer hardware and software.
STATUTORY REOUlREMENTS
FS200.065, entitled "Method of Fixing Millage" establishes specific guidelines that must be used
by all local govermnent entities in setting millage (property tax) rates. Under the statute, the City
is required, within 35 days of receipt of the "Certification of Taxable Value" (received June 30,
2000), to advise the Miami-Dade County Property Appraiser of the proposed millage rates, the
calculated "rolled-back" rate and the date, time, and place of the first public hearing to consider the
proposed millage rates and tentative budgets for FY 2000101. The required Debt Service millage
rate must also be set at the same time.
FY 2000101 Proposed Millage Rate
July 26, 2000
Page - 3 -
After setting the proposed operating millage rate, the Commission may, at any time prior to
the final adoption, lower the rates by adjusting priorities. Increasing the millage rate may only
be accomplished by an expensive mailing and advertising process to every property owner on
Miami Beach.
ANALYSIS OF PROPERTY V ALVES IN MIAMI BEACH
On June 30, 2000, the City received the "2000 Certification of Taxable Value" from the Property
Appraiser's Office stating that the taxable value for the City of Miami Beach is $8,367,448,538,
including $219,161,487 in new construction, which is the second largest increase this City has
experienced in its recent history.
The preliminary 2000 value represents an increase of 10.9 percent over 1999's final value of
$7,546,303,358. Alternately, the increase is 9.2 percent over 1999's preliminary value of
$7,659,818,594. The difference of $113,515,236 between 1999's preliminary and final values
represents the equalization loss of 1.5 percent due to appeals, etc.
The comparative assessed values for the Miami Beach Redevelopment Agency South Pointe
redevelopment district increased by $160,508,800 or 28 percent from $573,844,250 to $734,353,050.
The assessed values in the City Center redevelopment district increased by $128,708,690 or 14.1
percent from $911,135,287 to $1,039,843,977.
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 ofMiarni Beach, this value is determined by the 2000 Certification of Taxable
Value and has been set at $8,367,449. 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 $8,074,588.
Preliminary budget estimates reveal that the current millage rate of 7.499 mills will be sufficient to
fund a current, basic service level as it presently exists, and selected service enhancements, into the
next year.
The proposed millage rate of 7.499 mills will generate ad valorem tax revenues of$60,551,335 (of
which $10,130,311 will be transferred to the Redevelopment Agencies) for a net revenue total of
$50,421,024 in the General Fund. The total amount is $5,942,252 more than the prior year levy of
$54,609,083, reflecting a 10.9 % increase. The net General Fund ad valorem budget has increased
$3,060,389 (6.5%) from $47,360,635 to $50,421,024.
FY 2000101 Proposed Millage Rate
July 26, 2000
Page - 4 -
DETERMINING THE DEBT SERVICE MILLAGE LEVY
The debt service payment for FY 2000101 is $ 9,334,224 and requires a tax rate of 1.156 mills. This
rate is 0.043 mills, or three and six tenths percent (3.6%) less than the FY 1999/00 rate of 1.199
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 1999/00 (final) and FY 2000101 (preliminary).
Tax Rate Tax Levy
FY 99/00 FY 00/01 Inc!(Dec) FY 99/00 FY 00/01 Inc!(Dec)
General Operating 7.499 7.499 0.000 $54,609,083 $60,551,335 $5.942,252
Debt Service I.I99 L.U2 (Q,Qlli 8731336 9 334 224 602 888
TOTAL U2a .till (0.043) $63,340,4 I 9 $69,885,559 $6,545,140
If these recommended millage rates are tentatively adopted, then the combined tax rate will decrease
by 0.043 mills, or 0.5% less than the current year. The operating millage will remain constant, and
debt service millage will decrease by 0.043 mills, or three and six tenths percent (3.6%).
COMBINING .RJRISDICTIONAL 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 99/00, the Miami Beach portion of the total tax bill was 33.4
percent. The recommended millage rates for FY 2000/01 will maintain the Miami Beach
portion of the tax bill at 33.4 percent based on tax rates announced by other jurisdictions.
Revised FY 2000101 tax rates may be considered by Miami-Dade County on September 11,2000.
The countywide tax rate will remain at 5.809 mills; the County's debt service will decrease by 0.107
mills from 0.816 to 0.709 mills. An increase for the Library District has been announced of 0.030
mills from 0.321 to 0.351 mills. While it is not possible to determine the exact amount returned in
additional services. it should be noted that Miami-Dade County returned $6.251.249 durinlOl FY
1999/00 in tax-increment funds for the Redevelopment A!,!ency and its two tax-increment districts.
FY 2000101 Proposed Millage Rate
July 26, 2000
Page - 5 -
The Miami-Dade County School Board is scheduled to discuss its final tax rate on September 13,
2000 but has tentatively announced no increase in the current rate of9.644 mills.
Illustrated on the following page are the current and proposed tax rates for the multiple taxing
authorities.
Adopted Proposed % %of
Taxing Jurisdiction FY 99/00 FY 00/01 Incl(Dec) Change Total
Miami Beach 33.4
General Operating 7.499 7.499 0.000 0.00
Debt Service 1.199 1.156 (0.043) (3.59)
Dade County 26.5
Countywide Operating 5.809 5.809 0.000 0.00
Library 0.321 0.351 0.030 9.35
Debt Service 0.816 0.709 (0.107) (13.11)
School Board 9.644 9.644 0.000 0.00 37.2
Other 0.741 0.738 (0.003) (0.40) 2.9
Totals 26.029 25.906 (0.123) (0.47) 100.0
COMBINED MILLAGE LEVY IMPACT ON THE HOMEOWNER
Amendment 10 to the State Constitution took effect on January I, 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 2000, the CPI has been determined to be 2.7 percent
and thereby establishes the limit for increased values as of January 1,2000. 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 2.7% to a new value
of $205,400. The homestead exemption of $25,000 is then deducted, yielding a taxable value of
$180,400. Using the proposed tax rates, that value is then taxed as follows:
FY 200010 I Proposed Millage Rate
July 26, 2000
Page - 6 -
Taxing
Jurisdiction
Proposed
@ 7.499
1....lli..
8.655
Miami Beach
Dade County
School Board
Other
$39.21
23.62
52.08
346
Totals
$118.37
At the combined proposed millage rate of 8.655, the total dollars for both operating and debt service
paid to the City when compared to the prior year's taxable value of $175,000 and 8.698 millage rate,
would increase by $39.21. The overall taxes would increase by $118.37. This, of course, assumes
that the other taxing jurisdictions adopt these millages.
BUDGET RECOMMENDATION
The Administration recommends that you adopt 7.499 mills, which will maintain current basic
service levels, fund operational costs for projects as they come on-line, and fund enhanced service
levels as possible. In addition, you may select any millage rate up to the constitutional cap of 10
mills.
FIRST PUBLIC HEARING
The first public hearing on the proposed millage rates and tentative budgets for Fiscal Year 200010 I
must be held no later than 80 days (September 18th) or earlier than 65 days (September 3rd) from
the start of the TRIM ("Truth In Millage") calendar (July 1st). Other guidelines are: I) the public
hearing cannot be scheduled on a Sunday or on those days utilized by Miami - Dade County or the
Miami-Dade County School Board for their public hearings; and 2) if on a day other than Saturday,
the public hearing must be after 5:00 P.M.
Based on these guidelines, the first hearing must be held between September 3rd and September
18th. These dates are unavailable for the following reasons:
September 3,10,17
September II and 20
September 13
Sundays
Miami-Dade County Public Hearings
Miami-Dade County School Board Public Hearing
FY 2000101 Proposed Millage Rate
July 26, 2000
Page-7-
Of the remaining days, it is recommended that the first public hearing be setfor 5:01 P.M., Thursday,
September 14, 2000 in the City Commission Chambers, City Hall, 1700 Convention Center Drive.
Because no Commission meeting is set for that date, this will be a special meeting of the
Commission.
I wish to take this opportunity to thank the Office of Management and Budget, the Finance
Department, the Department Directors, Assistant City Managers, and all City personnel that worked
so diligently on this budget. The Administration looks forward to continued assistance from the
Budget Advisory Committee, the City Boards and Committees, and community groups upon release
of the Proposed Budget and at the public hearings to be held in September.
LAL:PDW:JC
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