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HomeMy WebLinkAboutAgenda Item Summary FormAGENDA ITEM SUMMARY FORM Second Reading Ordinance 91 Ca 13NE'AiVA16Z1 Date: 08/01 /2022 Commission Meeting Date: 09/22/2022 Type: Ordinance Subject: Adopt Millage FY'23 - City of Miami Purpose of Item: Requesting Department: Office of Management and Budget Sponsored By: District Impacted: All To establish the millage rates for the fiscal year ending September 30, 2023 (FY 2022- 23) at: General Operating 7.5539 Debt Service 0.3235 Total Millage Rate 7.8774 Background of Item: The City of Miami FY 2022-23 Proposed Operating Budget, as presented on July 26, 2022, contains the following recommended millage rates: General Operating 7.5539 Debt Service 0.3235 Total Millage Rate 7.8774 On July 28, 2022, the City Commission approved the millage caps and set the Budget Hearing dates, as approved by R-22-0286. A five- year history of millage rates is shown below: FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 Proposed General Operating 7.5865 7.5665 7.6665 7.6665 7.5539 Debt Service 0.4435 0.4235 0.3235 0.3235 0.3235 Total Millage Rate 8.0300 7.9900 7.9900 7.9900 7.8774 For the City Commission's reference, every tenth mill will generate approximately $6.265 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 value so that the information can be included in the notice of proposed property taxes mailed to property owners in August. Furthermore, the first hearing should be held on the proposed millage rate and tentative budget City of Miami File ID: 12394 (Revision: A) Printed On: 101512022 within 65 — 80 days (September 3 — 18), and the final hearing within 97 — 100 days of the July 1 st Certification. 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 3 and no later than September 18. 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 proposed to set the first budget hearing for September 10, 2022 and the second budget hearing on September 22, 2022. Miami- Dade County is scheduled to present their budget hearings on September 8, 2022 and September 20, 2022. The School Board Budget Meeting is scheduled for September 7, 2022. Effectively, the tentative millage adopted on July 28, 2022 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 Total Fiscal Impact: General Fund $473.00 Million, Debt Service (GOB) $22.67 Million Reviewed By Office of Management and Budget Marie Gouin Department Head Review Completed 08/05/2022 2:07 PM City Manager's Office Larry M. Spring Assistant City Manager Review Completed 08/09/2022 9:11 AM City Manager's Office Arthur Noriega V City Manager Review Completed 08/09/2022 12:00 PM Legislative Division Marta Gomez Legislative Division Review Completed 08/09/2022 12:51 PM Office of the City Attorney Richard Appleton ACA Review Completed 08/29/2022 11:19 AM Office of the City Attorney Victoria Mendez Approved Form and Correctness Completed 08/29/2022 11:04 PM City Commission Todd B. Hannon Meeting Completed 09/10/2022 10:00 AM Legislative Division Valentin J Alvarez Legislative Division Review Completed 09/12/2022 2:36 PM Office of the City Attorney Richard Appleton ACA Review Completed 09/12/2022 5:56 PM Office of the City Attorney Victoria Mendez Approved Form and Correctness Completed 09/13/2022 9:48 AM City Commission Nicole Ewan Meeting Completed 09/22/2022 5:05 PM Office of the Mayor Mayor's Office Signed by the Mayor Completed 09/23/2022 2:18 PM Office of the City Clerk City Clerk's Office Signed and Attested by the City Clerk Completed 09/23/2022 2:23 PM Office of the City Clerk City Clerk's Office Rendered Completed 09/23/2022 2:23 PM City of Miami File ID: 12394 (Revision: A) Printed On: 101512022 City of Miami City Hall 3500 Pan American Drive Legislation Miami, FL 33133 Ordinance www.miamigov.com Enactment Number:14108 File Number: 12394 Final Action Date: 9/22/2022 AN ORDINANCE OF THE MIAMI CITY COMMISSION RELATED TO TAXING, DEFINING, AND DESIGNATING THE TERRITORIAL LIMITS FOR THE CITY OF MIAMI ("CITY"); LEVYING AN AD VALOREM TAX ON ALL REAL AND PERSONAL PROPERTY IN THE CITY AT A TOTAL FINAL RATE OF 7.8774 MILLS ON THE DOLLAR OF THE TAXABLE VALUE OF SUCH PROPERTY FOR THE PURPOSES OF FUNDING THE GENERAL OPERATING BUDGET AND PAYMENT OF DEBT SERVICE FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2022 AND ENDING SEPTEMBER 30, 2023; CONTAINING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, for the purpose of this Ordinance, the City of Miami ("City") is defined as all of the territory and inhabitants within the area defined in Section 2 of the Charter of the City of Miami, Florida, as amended ("City Charter'), titled "Corporate Limits", and more specifically described in Exhibit "A" of the City Charter, and on file in the Office of the City Clerk; and WHEREAS, Section 200.065, Florida Statutes (2022), sets forth the method of fixing a millage rate; and WHEREAS, on July 1, 2022, the Miami -Dade County Property Appraiser ("PA"), pursuant to Section 200.065(1), Florida Statutes (2022), certified to the City the preliminary taxable value within its territorial limits, at $73,749,481,211; and WHEREAS, the City prepared a tentative budget for the fiscal year ("Fiscal Year") beginning October 1, 2022, and ending September 30, 2023, and computed a total proposed millage rate of 7.8774 which is necessary to fund the tentative budget other than the portion of the budget to be funded from sources other than ad valorem taxes; and WHEREAS, the Miami City Commission enacted Resolution No. 22-0286, wherein it directed the City Manager to submit to the PA and Miami -Dade County Tax Collector the total proposed millage rate of 7.8774 mills, together with the required information set forth in Section 200.65(2)(b), Florida Statutes (2022); and WHEREAS, Section 200.065(5)(a)(1), Florida Statutes (2022), requires that the now final millage rate of 7.8774 mills would further require, at the time of this second budget hearing, a two-thirds vote of the City Commission on the final determination to adopt such millage rate; and WHEREAS, Section 200.065(2)(c), Florida Statutes (2022), requires the City Commission to hold a public hearing on the proposed millage rate and tentative budget, which has occurred; NOW, THEREFORE, BE IT ORDAINED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: City of Miami File ID: 12394 (Revision: A) Printed On: 101512022 Section 1. The recitals and findings contained in the Preamble to this Ordinance are adopted by reference and incorporated herein as if fully set forth in this Section. Section 2. There shall be levied an ad valorem tax on all real and personal property in the City at a total final rate of 7.8774 mills on the dollar of the taxable value of such property for the Fiscal Year commencing October 1, 2022 and ending September 30, 2023, computed as follows for the purpose of: 7.5539 mills to fund the General Operating Budget. 0.3235 mills to provide for the payment of maturing principal, interest, charges, and requirements related thereto of voter approved indebtedness. Section 3. The final millage rate herein adopted for the purpose of funding the General Operating Budget is 9.91 percent greater than the rolled -back rate of 6.8725 mills. Section 4. If any section, part of a section, paragraph, clause, phrase or word of this Ordinance is declared invalid, the remaining provisions of the Ordinance shall not be affected. Section 5. This Ordinance shall be effective as of October 1, 2022, after final reading and adoption thereof.' APPROVED AS TO FORM AND CORRECTNESS: 1 1 i ria i "ndez, ity ttor ey 8/29/2022 i ria i ndez, ity Httor iey 9/1312022 ' This Ordinance shall become effective as specified herein unless vetoed by the Mayor within ten (10) days from the date it was passed and adopted. If the Mayor vetoes this Ordinance, it shall become effective immediately upon override of the veto by the City Commission or upon the effective date stated herein. whichever is later. City of Miami File ID: 12394 (Revision: A) Printed On: 101512022