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HomeMy WebLinkAboutAgenda Item Summary Form*(,e,,.„A„ * AGENDA ITEM SUMMARY FORM � File ID: #7467 Og4 Date: Requesting Department: Office of Management and Budget Commission Meeting Date: 07/23/2020 Sponsored By: District Impacted: All Type: Resolution Subject: Setting the FY 2020-21 Millage Cap Purpose of Item: To establish millage rate caps for the fiscal year ending September 30, 2021 at: General Operating 7.6665 Debt Service 0.3235 Total Millage Rate 7.9900 and to set the First Public Budget Hearing date and location as follows: September 10, 2020 at 5:05 pm at Manuel Artime Theater Background of Item: The City of Miami FY 2020-21 Proposed Operating Budget, as presented mid-July, contains the following recommended millage rates: General Operating 7.6665 Debt Service 0.3235 Total Millage Rate 7.9900 A five- year history of millage rates shows a steady overall decline: FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 Proposed General Operating 7.6465 7.4365 7.5865 7.5665 7.6665 Debt Service 0.6435 0.5935 0.4435 0.4235 0.3235 Total Millage Rate 8.2900 8.0300 8.0300 7.9900 7.9900 For the City Commission's reference, every tenth mill will generate approximately $5.386 million for the City of Miami General Fund in the next fiscal year. Florida Statute Section 200.065 governs the setting the millage rates, adoption of budget, and the timeframes required of each. It requires that the City of Miami advise the Property Appraiser of its proposed millage within 35 days of the July 1 st certification of taxable value (on or before August 4) so that the information can be included in the notice of proposed property taxes mailed to property owners in August. The same statute governs the timeframes for the first and second budget hearings. The first hearing must be held between 65 and 80 days of the same July 1 certification of value, which is no earlier than September 4 and no later than September 19. The City must then hold a second budget hearing with enough time to provide the final budget and millage rates to the property appraiser, tax collector, and State of Florida Department of Revenue by October 1. The City of Miami proposes to set the first public budget hearing for September 10, 2020 at Manuel Artime Theater. The date, time, and place of the second public budget hearing will be determined at the first hearing. Miami- Dade County is scheduled to present their budget hearings on September 3, 2020 and September 17, 2020. The School Board Budget Meeting is scheduled for September 2, 2020. Effectively, the tentative millage adopted represents the upper limit for the millage rates to be considered in September. The Commission may lower the general operating millage rate at either of the two budget hearings, but effectively cannot raise it above what is adopted in July. State law allows for this possibility, but it cannot be practically achieved within the timeframes provided in state law. According to the Property Appraiser's Office, this re -noticing of millage rates has not been accomplished even once in the history of the State of Florida. Budget Impact Analysis Item is Related to Revenue Item is NOT funded by Bonds Item has NO budget impact Total Fiscal Impact: Reviewed By Office of Management and Budget Christopher M Rose Office of Management and Budget Everton Garvis City Manager's Office Sandra Bridgeman Legislative Division Valentin J Alvarez City Manager's Office Arthur Noriega V Office of the City Attorney Barnaby L. Min Office of the City Attorney Victoria Mendez City Commission Nicole Ewan Legislative Division Valentin J Alvarez Office of the City Attorney Barnaby L. Min Office of the Mayor Mayor's Office Office of the City Clerk City Clerk's Office Office of the City Attorney Victoria Mendez Office of the City Clerk City Clerk's Office Department Head Review Completed 07/14/2020 3:37 PM Budget Analyst Review Completed 07/14/2020 3:44 PM Assistant City Manager Review Completed 07/14/2020 7:31 PM Legislative Division Review Completed 07/14/2020 7:33 PM City Manager Review Completed 07/14/2020 9:17 PM Deputy City Attorney Review Completed 07/14/2020 9:27 PM Approved Form and Correctness Completed 07/14/2020 9:50 PM Meeting Completed 07/23/2020 9:00 AM Legislative Division Review Completed 07/27/2020 10:29 AM Deputy Attorney Review Completed 07/27/2020 12:21 PM Unsigned by the Mayor Completed 07/31/2020 11:58 AM Signed and Attested by the City Clerk Completed 07/31/2020 12:50 PM Approved Form and Correctness with Modification(s) Completed Rendered Completed 07/31/20204:54 PM A RESOLUTION OF THE MIAMI CITY COMMISSION COMPUTING A PROPOSED MILLAGE RATE FOR THE CITY OF MIAMI ("CITY") FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2020 AND ENDING SEPTEMBER 30, 2021; AUTHORIZING AND DIRECTING THE CITY MANAGER TO SUBMIT BOTH SAID PROPOSED MILLAGE RATE AND THE STATUTORILY DEFINED ROLLED BACK MILLAGE RATE TO THE MIAMI-DADE COUNTY PROPERTY APPRAISER AND THE MIAMI-DADE COUNTY TAX COLLECTOR TOGETHER WITH THE DATE, TIME, LOCATION, OR VIRTUAL MEETING FORMAT OF THE CITY'S FIRST PUBLIC BUDGET HEARING AT WHICH THE CITY COMMISSION WILL CONSIDER THE PROPOSED MILLAGE RATE AND THE CITY'S TENTATIVE BUDGET FOR SAID FISCAL YEAR AND THE DATE, TIME, LOCATION, OR VIRTUAL MEETING FORMAT OF THE CITY'S SECOND PUBLIC BUDGET HEARING. WHEREAS, Section 200.065, Florida Statutes ("Statute"), sets forth requirements for the "Truth in Millage" ("TRIM") notice and requires each taxing authority to establish a proposed millage rate and to determine the statutorily defined rolled back millage rate; and WHEREAS, said proposed millage rate will reflect the levy necessary to fund the City of Miami's ("City") tentative budget other than the portion of the budget to be funded from sources other than ad valorem taxes; and WHEREAS, the proposed millage and the date, time, and place of the City's first public budget hearing ("First Public Budget Hearing") to consider the millage rate and proposed budget must be submitted to the Miami -Dade County ("County") Property Appraiser and the County Tax Collector and is not binding but is necessary for preparation of TRIM notices; and WHEREAS, the Statute defines the "rolled back millage rate" as a millage rate which, with certain specified exclusions, will provide the same ad valorem tax revenue for each taxing authority as was levied during the prior year less the amount, if any, paid or applied as a consequence of an obligation measured by the dedicated increment value; and WHEREAS, the rolled back millage rate exclusions are "new construction, additions to structures, deletions, increases in the value of improvements that have undergone a substantial rehabilitation which increased the assessed value of such improvements by at least one hundred percent (100%), property added due to geographic boundary changes, total taxable value of tangible personal property within the jurisdiction in excess of one hundred fifteen percent (115%) of the previous year's total taxable value, and any dedicated increment value"; and WHEREAS, Section 200.065(2)(d), Florida Statutes, requires that the tentative millage rate, the statutorily defined rolled back millage rate, the final budget, and the date, time, and place of the second public budget hearing ("Second Public Budget Hearing") must be advertised within fifteen (15) days of the First Public Budget Hearing; OF .�f City of Miami ' �, City Hall t '"01;; ;NATO * Legislation 3500 Pan American Drive Miami, FL 33133 Resolution www.miamigov.com Enactment Number: R-20-0221 File Number: 7467 Final Action Date:7/23/2020 A RESOLUTION OF THE MIAMI CITY COMMISSION COMPUTING A PROPOSED MILLAGE RATE FOR THE CITY OF MIAMI ("CITY") FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2020 AND ENDING SEPTEMBER 30, 2021; AUTHORIZING AND DIRECTING THE CITY MANAGER TO SUBMIT BOTH SAID PROPOSED MILLAGE RATE AND THE STATUTORILY DEFINED ROLLED BACK MILLAGE RATE TO THE MIAMI-DADE COUNTY PROPERTY APPRAISER AND THE MIAMI-DADE COUNTY TAX COLLECTOR TOGETHER WITH THE DATE, TIME, LOCATION, OR VIRTUAL MEETING FORMAT OF THE CITY'S FIRST PUBLIC BUDGET HEARING AT WHICH THE CITY COMMISSION WILL CONSIDER THE PROPOSED MILLAGE RATE AND THE CITY'S TENTATIVE BUDGET FOR SAID FISCAL YEAR AND THE DATE, TIME, LOCATION, OR VIRTUAL MEETING FORMAT OF THE CITY'S SECOND PUBLIC BUDGET HEARING. WHEREAS, Section 200.065, Florida Statutes ("Statute"), sets forth requirements for the "Truth in Millage" ("TRIM") notice and requires each taxing authority to establish a proposed millage rate and to determine the statutorily defined rolled back millage rate; and WHEREAS, said proposed millage rate will reflect the levy necessary to fund the City of Miami's ("City") tentative budget other than the portion of the budget to be funded from sources other than ad valorem taxes; and WHEREAS, the proposed millage and the date, time, and place of the City's first public budget hearing ("First Public Budget Hearing") to consider the millage rate and proposed budget must be submitted to the Miami -Dade County ("County") Property Appraiser and the County Tax Collector and is not binding but is necessary for preparation of TRIM notices; and WHEREAS, the Statute defines the "rolled back millage rate" as a millage rate which, with certain specified exclusions, will provide the same ad valorem tax revenue for each taxing authority as was levied during the prior year less the amount, if any, paid or applied as a consequence of an obligation measured by the dedicated increment value; and WHEREAS, the rolled back millage rate exclusions are "new construction, additions to structures, deletions, increases in the value of improvements that have undergone a substantial rehabilitation which increased the assessed value of such improvements by at least one hundred percent (100%), property added due to geographic boundary changes, total taxable value of tangible personal property within the jurisdiction in excess of one hundred fifteen percent (115%) of the previous year's total taxable value, and any dedicated increment value"; and WHEREAS, Section 200.065(2)(d), Florida Statutes, requires that the tentative millage rate, the statutorily defined rolled back millage rate, the final budget, and the date, time, and place of the second public budget hearing ("Second Public Budget Hearing") must be advertised within fifteen (15) days of the First Public Budget Hearing; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as if fully set forth in this Section. Section 2. A proposed millage rate for the City for the Fiscal Year beginning October 1, 2020 and ending September 30, 2021 ("Fiscal Year") is hereby computed as follows: General Operating Millage 7.6665 Debt Service Millage 0.3235 Total Millage Rate 7.9900 Section 3. The State of Florida statutorily defined rolled -back millage rate for the purpose of funding the Fiscal Year's General Operating Budget for the City is 7.3608 mills. Section 4. The City's First Public Budget Hearing at which the City Commission will consider the proposed millage rate and the City's tentative budget for the Fiscal Year is hereby set for September 10, 2020 at 5:05 P.M. in the City Commission Chambers at City Hall, 3500 Pan American Drive, Miami, Florida or at such other time, date, location, or virtual meeting format as otherwise allowed by Florida laws. Section 5. The City's Second Public Budget Hearing at which the City Commission will consider the tentative millage rate, the statutorily defined rolled back millage rate, and the final budget for the Fiscal Year is hereby set for September 24, 2020 at 5:05 P.M.in the City Commission Chambers at City Hall, 3500 Pan American Drive, Dinner Key, Miami, Florida or at such other time, date, location, or virtual meeting format as otherwise allowed by Florida laws. Section 6. The City Manager is hereby authorized' and directed to submit both said proposed millage rate and the statutorily defined rolled back millage rate for the City to the County Property Appraiser and to the County Tax Collector together with the date, time, and place at which the City Commission will hold the First Public Budget Hearing and the Second Public Budget Hearing. Section 7. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.2 APPROVED AS TO FORM AND CORRECTNESS: 1 nz, City Attor ey&ina de7/14/2020 The herein authorization is further subject to compliance with all legal requirements that may be imposed, including but not limited to, those prescribed by applicable City Charter and City Code provisions. 2 If the Mayor does not sign this Resolution, it shall become effective at the end of ten (10) calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission.