2007-26649 ResoRESOLUTION NO. 2007-26649
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ADOPTING: 1) THE FINAL AD VALOREM
MILEAGE OF 5.6555 MILLS FOR GENERAL OPERATING PURPOSES,
WHICH IS NINE PERCENT (9%) LESS THAN THE "ROLLED-BACK" RATE
OF 6.2212 MILLS; AND 2) THE DEBT SERVICE MILEAGE RATE OF 0.2415
MILLS FOR FISCAL YEAR (FY) 2007/08.
WHEREAS, on September 17, 2007 the Mayor and City Commission tentatively adopted
the operating millage rate 5.6555 mills for general operating purposes, and 0.2415 mills for debt
service; and
WHEREAS, Section 200.065, Florida Statutes, requires that at the conclusion of the
second public hearing on the City's proposed tax rate and budget, the City Commission: 1) adopt
the ad valorem millage rate for FY 2007/08 operating purposes; and 2) the required Debt Service
millage rate; this is accomplished by publicly announcing the name of the taxing authority, the
"Rolled-back" rate, and the millage rates before adoption of the millage levy resolution; and
NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE 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 (FY) 2007/08, 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 5.6555 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 nine percent (9%) less than the "Rolled-back"
rate of 6.2212 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 0.2415 mills.
PASSED and ADOPTED this 26th day of
ATTEST:
(~ r~ ~~.
CITY CLERK
Robert Parcher
AppROVED AS TO
FORM & LANGUAGE
8- FOR EXECUTION
~-
m ate
COMMISSION ITEM SUMMARY
Condensed Title:
A resolution of the Mayor and City Commission of The City of Miami Beach, Florida, adopting: 1) the final
Ad Valorem Millage of 5.6555 mills for general operating purposes, which is nine percent (9%) less than
the "Rolled-Back" Rate of 6.2212 mills; and 2) the debt service millage rate of 0.2415 mills for Fiscal
Year (FY) 2007/08.
Key Intended Outcome Supported:
Ensure expenditure trends are sustainable over the long term --Improve the City's overall financial health
and maintain overall bond rating -Increase Community Satisfaction with City Services
Supporting Data (Surveys, Environmental Scan, etc.):
46% of residents and 55% of businesses rate the value of city services for tax dollars paid as excellent or
good. The value of city services for tax dollars paid appeared as a key driver for residents' perceptions of
overall quality of life and city government meeting their needs. Taxes appeared as one of the areas most
important to resident's quality of life in the City of Miami Beach. It also appeared as a key driver for
businesses' perceptions of City government and interested in hearing their concerns, Miami Beach as a
place to run a business, and whether the City is doing better, the same, or worse versus a few years ago.
Between FY 1999/2000 & FY 2006/07 City of Miami Beach Total Combined Millage decreased by 1.025
mills (11.8%) to 7.673. In FY 2007/08, the adopted millage for all taxing jurisdictions within the City of
Miami Beach is 23.3218, with 22 communities in Miami-Dade County above Miami Beach and 13
communities below. The highest was Golden Beach (26.8898). The lowest was Key Biscayne (19.0988).
Of the 35 other municipalities in Miami-Dade County, only 12 adopted proposed millage rates in July that
were at least 9% below the roll-back rate, with Miami Beach being the only City with a population greater
than 50,000 to do so.
Issue:
Shall the Mayor and City Commission adopt the attached resolution which sets the final millage?
Item Summa /Recommendation:
The Administration is recommending the City's total millage rate be reduced by a 1.7760 mills to a rate of
5.8790 mills, an unprecedented 23 percent decrease in millage. The operating millage rate will decrease to
the rate of 5.5173, a decrease of 1.6747 mills, and the General Fund Capital Renewal and Replacement
millage will decrease from 0.182 to 0.1382, a decrease of 0.0438, generating the same level of funding for
renewal and replacement as in FY 2006/07. The debt service millage rate will decrease by 0.0575, from
0.299 to 0.2415. Further, the combined millage rate overall is almost 2.8 mills lower than it was in FY
1999/00, and remains lower than most municipalities in Miami-Dade County..
Adviso Board Recommendation:
Financial Information:
Source of Amount Account
Funds:
N/A 1
OBPI Total
Financial Impact Summary: For FY 2006/07, the total combined operating millage was adopted at 7.374.
Based on the June 29, 2007 Certification of Taxable Value, the reduction to 5.6555 mills represents a
reduction of $44 million in property tax revenues. FY 2006/07 combined Property tax (ad valorem tax)
revenues was budgeted at $161.8 million, excluding debt service. If approved, the recommended millage
will generate $144.3 million for the FY 2007/08 budget year which is a reduction of $17.5 million (11 %)
from FY 2006/07 bud eted ro ert tax revenues.
city GIerK's Office Legislative Trackina:
"~~~ ~~ ~B~~paQ~ >~ q 20-07
m MIAMIBEACH
City of Miami Beath, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachA.gov
COMMISSION MEMORANDUM
TO: Mayor David Dermer and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: September 26, 2007
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ADOPTING: 1) THE FINAL AD VALOREM MILEAGE
OF 5.6555 MILLS FOR GENERAL OPERATING PURPOSES, WHICH IS NINE
PERCENT (9%) LESS THAN THE "ROLLED-BACK" RATE OF 6.2212 MILLS;
AND 2) THE DEBT SERVICE MILEAGE RATE OF 0.2415 MILLS FOR FISCAL
YEAR (FY) 2007/08.
ADMINISTRATION RECOMMENDATION
The Administration recommends that the City Commission adopt the attached Resolution
which sets the following:
1) Final adopted millage rates for Fiscal Year (FY) 2007/08
General Operating 5.5173 mills (7.192 last year, 23% decrease)
Capital Renewal & Replacement 0.1382 mills (0.182 last year, 24% decrease)
Sub-Total Operating Millage 5.6555 mills (7.374 last year, 23°/a decrease)
Debt Service 0.2415 mills (0.299 last year, 19% decrease)
Total 5.8970 mills (7.673 last year, 23% decrease)
2) The final adopted combined millage rate of 5.8970 mills is 1.776 mills less than the
7.673 combined millage rate for FY 2006/07. The final adopted operating millage rate
for FY 2007/08 is 5.6555 mills. State statute requires that we advertise that this rate is
9 % less than the "Rolled-back" rate of 6.2212 mills.
The first public hearing on the tentative millage rates and budgets for FY 2007/08 was held
on September 17, 2007. The millage rates presented herein are those which were tentatively
adopted at the end of that first public hearing.
Pursuant to the Roll-Back component of the legislation adopted by the Florida legislature in
June the City of Miami Beach is required to set its FY 2007/08 to the roll back rate plus an
additional 9°/a reduction. The rollback rate is the millage rate required to produce the same
level of property tax revenues in FY 2007/08 as collected in FY 2006/07, thereby forgoing
any revenues associated with growth in assessed values. The rollback rate is calculated by
dividing the prior year property tax revenues by the current year property values, after new
construction, major improvements, annexations, and tax increment districts are removed
from current year property values. In future years, growth in property tax revenues will be
indexed to a rate based on growth in personal income.
In addition, the legislation provided for a special election to be held in January to approve
constitutional changes to the homestead exemption and changes in the assessment of
affordable housing, working waterfronts and a $25,000 exemption of tangible personal
property. The constitutional changes, if approved, would be applicable in the FY 2008/09
budget and, therefore, are not factored into our calculations at this time. Further, the state
may consider additional changes in the next legislative session, which may have additional
impacts for future years.
Under the new legislation, the City may elect to approve millage rates above these levels up
to the constitutional cap of 10 mills subject to an extraordinary vote by the Commission or
referendum:
• Millage above the 9% reduction but at or below rollback requires a supermajority of the
Commission.
• Millage above rollback but at or below current millage requires unanimous approval of
the Commission.
• Millage above current levels requires a referendum.
Of the 35 municipalities in Miami-Dade County, only 12 reduced their millage by at least the
9%, with Miami Beach being the only City with a population greater than 50,000 to do so.
PROCEDURE
Florida Statutes 200.065 requires that at the conclusion of the second public hearing on the
proposed tax rate and budget, the City Commission proceed in the following specific
manner:
Adopt an ad valorem millage rate for FY 2007/08 operating purposes and debt
service. The statute requires the name of the taxing authority, the "Rolled-back" rate,
and the millage rates be publicly announced before adoption of the millage levy
resolution.
State statute requires that only the title be read aloud.
2. Adopt a general operating budget for FY 2007/08. Also included, are budgets for
G.O. Debt Service, RDA Fund-Ad Valorem Taxes, Enterprise and Internal Service
Funds. This is accomplished by adopting a companion Resolution. (See
accompanying Agenda Item R7A2).
ANALYSIS OF PROPERTY VALUES IN MIAMI BEACH
On June 29, 2007, the City received the 2007 Certification of Taxable Value from the
Property Appraiser's Office stating that the taxable value for the City of Miami Beach is
$26,850,061,663, including $291,141,109 in new construction. The preliminary 2007 value
represents an increase of $4.1 billion, or 18 percent over 2006's July 1 Certification of
Taxable Value of $22,739,947,828.
However, the 2007 Certification of Taxable Value from the Property Appraiser's Office, also
decreased the estimated "2006 Taxable Value" from $22.740 billion to $22.258 billion, a
decrease of $482 million. This difference between 2006's preliminary and final values
represents the loss of 2.1 percent due to appeals, value adjustments, etc. The majority of
this loss occurred in areas outside the City Center Redevelopment District and the South
Pointe area, and is significantly higher than in prior years.
The revised taxable values for 2006 alone have several ramifications, including:
• Reductions to FY 2006/07 property tax collections
• Further reductions to the calculated Rolled-Back Millage for FY 2007/08
• Revision to the assumed rate of appeals, value adjustments and resulting collections
in FY 2007/08
The comparative assessed values for the Miami Beach Redevelopment Agency City Center
redevelopment district increased from $3,003,565,939 to $3,585,310,480, an increase of
$581,744,541, or a 19% increase in values over 2006 values. In addition, assessed values
within the geographic area formerly known as the South Pointe Redevelopment District
increased from $2,905,687,850 to $3,452,319,916, an increase of $546,632,066, or a 19%
increase in values over 2006 values. As with Citywide values, 2006 Taxable Values for City
Center and the South Pointe area, were revised to $2,967,904,551 and $2,867,705,107, a
decrease of $36 million and $38 million, respectively.
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
2007 Certification of Taxable Value and has been set at $26,850,061,663. Florida Statutes
permit a discount of up to five percent for early payment discounts, delinquencies, etc.
Therefore, the 95 percent value of the mill is $25,507,559.
In FY 2006/07, the millage rate for general City operations was adopted at 7.192 mills. An
additional 0.182 mills was adopted for Renewal and Replacement; for a total combined
operating millage of 7.374. Based on the June 29, 2007 Certification of Taxable Value,
7.374 mills would generate approximately $188 million in tax revenues, an increase of $26
million over current year budgeted fiscal year tax collections. This increased revenue would
have allowed us to absorb normal increases in salary and fringes and other normal
increases due to inflation, as well as provide significant tax relief to the community.
The rollback rate is the millage rate required to produce the same level of property tax
revenues in FY 2007/08 as collected in FY 2006/07, thereby forgoing any revenues
associated with growth in assessed values. The rollback rate is calculated by dividing the
prior year property tax revenues by the current year property values, after new construction,
major improvements, annexations, and tax increment districts are removed from current year
property values. For FY 2007/08, the resulting Roll-Back Rate is 6.2212, more than one (1)
mill less than the millage rate adopted for FY 2006/07.
However, consistent with the recently enacted State legislation, the proposed millage for FY
2007/08 includes an additional 9% reduction. This results in a millage rate of 5.6555.
Together with the impacts of the revised 2006 values, offset by additional property taxes
from new construction, approximately $17.5 million is reduced from FY 2006/07 budgeted
property tax revenues collections in FY 2007/08. These estimates of revenue impacts are
for the City as a whole, with General Fund impacts of $15 million, and $2.5 million in
combined reductions for the City Center Redevelopment District and the South Pointe Area.
Millage for Renewal and Replacement
In FY 2004/05, the City established a restricted account for the renewal and replacement of
the City's General Fund facilities to extend the useful life or replace equipment whose useful
life has expired. Project specific appropriations from the fund are reviewed and approved
each year by the City Commission as part of the budget process, and are used exclusively
for those capital expenditures that help to extend or replace the useful life of our facilities.
Of the Total Operating millage of 5.6555, it is recommended that 0.1382 be restricted for
Renewal and Replacement, thereby maintaining Renewal and Replacement funds at $3.266
million, the same level as in FY 2006/07.
General Obligation Debt Service Fund
The general obligation debt service payment for FY 2007/08 is approximately $6.2 million,
reflecting a decrease of $400,000. Base on the June 29 Certified Taxable Value from the
Property Appraiser, these bonds would require the levy of a reduced debt service millage of
0.2415 mills. This represents a reduction of 0.0575 mills.
General Obligation Debt Service Millage
0
~o
o ~c~
d
98 99 '00 '01 '02 '03 '04 'O5 '06 '07 '08
Fiscal Years
Total Combined Millage Rates
If these recommended millage rates are adopted, then the City of Miami Beach's overall
combined tax rate millage will decrease by 1.7760 mills as compared to the current year, a
decrease of 23 percent.
_... ____m___ ___.~____. m...___.
Fl( 06/07~~8 Inc/ Dec , %Inc/
City of Miami Beach Millage Rates; ~~
Operating ~~ ~~~' ~ .7.1920 5.5173 (1.67 ) ~~~~ -23%
_~ ._. ~~.....m _ ___ _._ ._ee
Capital Renewal & Replacement ' m _ 0.1820 0.1382~(0.0438)~~ -24%
~..._ _,
Debt Sernce 0.2990. 0.2415 ~ (0.0575) I -19%
~_.~ _._ ..~.~~_ _ ____._ _ _~~-Total' 7.6730, 5.89701 (1.7760) -23%
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.
The County has proposed a decrease in their property tax rate, but changes in tax rates for
other jurisdictions are unknown at this time. Using tax rates known at this time, the changes
in taxes rates paid by City of Miami Beach residents and businesses is estimated as shown
in the following table.
~ ~ % Inc/ % of
OVERLAPPING TAX MILEAGE FY 06/07 FY 07/08 'Inc/(Dec) ~ (Dec) ~ Tax Bill
City of Miami Beach Millage Rates ~ ~ ~
Operating __~~.... ~~~~~ _w__ _.. _~.._~w~~7.1920 5.5173 -1.6747
Capital Renewal & Replacement 0.1820 ~ 0.1382 -0.0438
Debt Service
__ _ _ _ __. 0.2990 i 0.2415 -0.0575
Total 7.6730 5.8970 -1.7760 -23%~ 29%
Miami Dade Coun ~ ~~ ~~ ~~~ ~~
Countywide
~. ___ __._._._....~..µ.~
Libra ~
rY 5 6150
._._ _.W .._.__._.
0.4860
_w__ 4.5796r
____,~
0.3842 -1.03541
__~_.~~_._____ ____.,__._~
-0.1018
_~_._
__.~._.~____.._.. __._ _. _~_._~.._.~_
Debt Service __._.._~__
0.2850; ._ ___._________
.:0.2850 . _ _..~ ~_.__.~ _~_.__n
0.0000 __~.
Subtotals
.- __ ._ __e ~. _._ -----____
6.3860
5.2488
-1.1372 -18%
26%
_._ ~,~~.~ ...
E
School Board ~.~~
8.1050 ~.v ~ .. ~ , ~~.m
7.9480 mm___~ w _~~. ,.~
~~.____ 2%
-0.1570, _ __a._m~_.
39%
Children's Trust 0 4220' 0 4223 0 0003 ~- 0%} °~
Other _
_~ ~~~..~._.~_._~_~m___..____ 0.73601 0.6586 0.0774 11 % 3%
Total) 23.3220; 20.1747 -3.1476 -13% 100%
In FY 2006/07, the Miami Beach portion of the total tax bill was 33 percent. The
recommended millage rates for FY 2007/08 will place the Miami Beach portion of the tax bill
at 29 percent based on tax rates known at this time.
Combined Millage Levv Impact on Miami Beach Proaerty Owners
Homesteaded Property Owners
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 2.5 percent and, therefore, the increase is capped at 2.5 percent for
increased values as of January 1, 2007. The $25,000 homestead exemption is applied after
the increase in value.
The following table provides examples on the impact of the reduced millage and the 2.5%
increase in values, with $295,000 as the median assessed property value for a
homesteaded value in 2006.
Change in Takes Paid by Sample Homesteaded Properties
FY 2006 Assessed Value '
Less $25,000 Exem tion ' $
$ 250,000 $
(25,000: $ 295,000 i
(25,000) $ 500_,000 $
$ (25,000, $ 1,000,000
(25,000)
FY 2006 Taxable Value $ 225,000 $ 270,000 $ 475,000 $ 975,000
2006 Taxes
_____.
City of Miami Beach
_.a_._.._..~__ ~..._~... _
Miami Dade County ___
$
$ __w_ _ _____ . .
1,726 $
_
1,437 i $ ~
2,072
_ _
1,72
4 =- __. _.
$ ~~3,645 $
~.~ _
$ 3,033 ~ $ ..
7,481
.
6,226
Other $ 2,084 ~ $ _
2,501 ~ $ 4,4 ~ 9,031
Total $ 5,247 $ 6,297 $ 11,078 ~ $ 22,739
{
FY 2007 Taxable Value with 2.5% incr.'; $ 231,250 , $ 277,375 $ 487,500 $ 1,000,000
2007 Taxes
~. _
Chi _of Miami Beach___ ____.__ __
Miami Dade Coun
.
__._._~tY ..~ _~
__
_
_
$
$ ,
_ _~
1,364 ' $ 1,636
..
1,214$ 1,456
_~
~
$ 2,875 $ _~
$_2,559 $
~
_ 5,897
_5,249
~
, _
~ ~
.
__
Other
_
Total $
$ 2,088~$
_
4,665 $ 2,504 ,
5,596 $ 4,402
__ .._.mm
$ 9,835 = $ 9,029
..__~___.
20,175
$ Chan e in Taxes
.
_
_r~______ _.___.__
~
.
.
~
.
_
__e_._ ~
_
__
w
~
.n.
_
_
_
Cit~rof Miami Beach
~ $ (363)x$ (436) $ (770) $ (1,584_)
~
Miami Dade Coun
m tY ~~_._
.._
C-ther
..._.
mµww._w ....__.~__~_ Total $
$ .
$ (223) $
___
_ 4 $
_w~ ~. ~
(582; $ ~ (268) ~
3 1
___.__~M_w...
(701) $ (475)
$ .. ~
$ (1,243)_ $
~~m_w
$ (978~y
.__µ_µ_____._._~3
(2,564)
Non-homesteaded Properties
Impacts of non-homesteaded properties will vary based on the increase in assessed value
for each individual property.
CONCLUSION
The Administration recommends adoption of the attached Resolution which sets both final
operating and debt service millage rates for FY 2007/08.
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m N1IAMIBEACH
CfTY OF MIAMI BEACH
NOTICE OF A SPECIAL
- Cm( COMMISSION MEETING
ial Commission Meeting regarding the 2nd Proposed Budget Public Hearings for FY 2007/
NOTICE IS HEREBY given that a Spec'
~ will be held by the City Commission of rd floCo~Cf Hama B ~ Convent on Center D S eayMiamp Beach, F o~ri~7~ commencing
at 5:00 P.M., in the Commission Chambers, 3 ~Y _
P'm' fan the ro sed millage rate and budget for FY 2007/2008 for the City of Miami Beach.
second public hearing adop ~ g P Po
~ P•m• sed millage rate and budget for FY 2007/2008 for the Normandy Shores Local
The second public hearinglm rov~nement Distn~.
Government Neighborhood p
In addition, the City Commission will be discussing other City related business d Pert nrmance Improvement at (305) 673-7510.
Inquiries concerning this meeting should be directed to the Office of Budget an
Robert E. Parcher, City Clerk
City of Miami Beach
on decides to appeal any decision made
Pursuant to Section 286.0105, Fla. Stat., the City hereby advises the public that: if a pars
~ C8y Comm'~ssion with respect to any matth r c~~ i ~ ~ ~ imony and ev dance upo wrh ch the appeal stto be
verbatim record of the proceedings is made. whic
based. This notice does not constitute consent by th~i'o fuse ~~~ nlawadmission of otherwise inadmissible or irrelevan
evidence, nor does it authorize challenges or appeal
int ers, information on access for persons with disabilities, and/or
To request this material in accessible format, sign language ~t s nsored proceeding, please contact (305) 604-2489
any accommodation to review any document or participate in any c'~1y- po
(~)~ (30573-7218(TTlr7 five days in advance to initiate your request. 1lY users may also call 711 (Florida Relay Service).
I Ad 1451