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HomeMy WebLinkAboutAgenda Item Summary FormAGENDA ITEM SUMMARY FORM File ID: #2899 Date: 09/20/2017 Commission Meeting Date: 09/28/2017 Requesting Department: Office of Management and Budget Sponsored By: District Impacted: All Type: Resolution Subject: Adopt Final Millage Rate for FY 2017-18 - City of Miami Purpose of Item: To establish the millage rates for the fiscal year ending September 30, 2018 (FY 2017- 18) at: General Operating 7.4365 Debt Service 0.5935 Total Millage Rate 8.0300 Passed on First Reading at the September 19, 2017 Budget Hearing. Background of Item: The City of Miami FY 2017-18 Proposed Operating Budget, as presented on July 07, 2017, contains the following recommended millage rate: General Operating Debt Service Total Millage Rate 7.4365 0.5935 8.0300 On July 27, 2017, the City Commission approved the millage caps as proposed above by Resolution No. R-17-0383 A five- year history of millage rates shows a steady overall decline: FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 Proposed General Operating Debt Service Total Millage Rate 7.6148 0.8162 8.4310 7.6465 0.7385 8.3850 7.6465 0.6886 8.3351 7.6465 0.6435 8.2900 7.4365 0.5935 8.0300 For the City Commission's reference, every tenth mill will generate approximately $4.3 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 1st certification of value 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. Effectively, the tentative millage adopted on July 27, 2017 and the preliminary millage adopted on September 19, 2017 represent the upper limit for the millage rates to be considered on September 28, 2017. 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: $353,954,000 Office of Management and Budget Office of Management and Budget City Manager's Office City Manager's Office Legislative Division Office of the City Attorney Office of the City Attorney City Commission Legislative Division Office of the Mayor Office of the City Clerk Office of the City Attorney Office of the City Attorney Reviewed B Everton Garvis Christopher M Rose Fernando Casamayor Daniel J. Alfonso Maricarmen Lopez Maricarmen Lopez Maricarmen Lopez Nicole Ewan Valentin J Alvarez Mayor's Office City Clerk's Office Barnaby L. Min Victoria Mendez Budget Analyst Review Completed Department Head Review Completed Assistant City Manager Review Completed City Manager Review Completed Legislative Division Review Skipped Deputy City Attorney Review Skipped Approved Form and Correctness Skipped Meeting Completed Legislative Division Review Completed Signed by the Mayor Completed Signed and Attested by the City Clerk Completed Deputy Attorney Review Completed Approved Form and Correctness Completed 09/20/2017 11:39 AM 09/20/2017 1:10 PM 09/20/2017 2:10 PM 09/20/2017 2:55 PM 09/28/2017 12:42 PM 09/28/2017 12:42 PM 09/28/2017 12:42 PM 09/28/2017 5:05 PM 09/29/2017 3:06 PM 09/29/2017 3:37 PM 09/29/2017 3:38 PM 09/29/2017 5:16 PM 09/29/2017 10:30 PM City of Miami Legislation Resolution Enactment Number: R-17-0474 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 2899 Final Action Date:9/28/2017 A RESOLUTION OF THE MIAMI CITY COMMISSION PROPOSING A FINAL MILLAGE RATE FOR AD VALOREM TAXATION PURSUANT TO SECTION 200.065, FLORIDA STATUTES (2017), 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 8.0300 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, 2017 AND ENDING SEPTEMBER 30, 2018; CONTAINING A SEVERABILITY CLAUSE, AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Section 200.065, Florida Statutes (2017), sets forth the method of computing, proposing, and fixing a millage rate for ad valorem taxation; and WHEREAS, for the purposes of this Resolution, 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, entitled "Corporate Limits", and more specifically described in Exhibit "A" of the Charter, on file in the Office of the City Clerk; and WHEREAS, on July 1, 2017, the Miami -Dade County Property Appraiser ("PA"), pursuant to Section 200.065(1), Florida Statutes (2016), certified to the City the preliminary taxable value within its territorial limits, set at $49,621,309,999; and WHEREAS, the City prepared a tentative budget for the Fiscal Year beginning October 1, 2017 and ending September 30, 2018 and computed a total proposed millage rate of 8.0300, 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, on July 27, 2017, the City Commission enacted Resolution No. R-17-0383, wherein it directed the City Manager to submit to the PA and the Miami -Dade County Tax Collector the total proposed millage rate of 8.0300 mills, together with the required information set forth in Section 200.65(2)(b), Florida Statutes (2016); and WHEREAS, on September 14, 2017, the City held a public hearing, as required pursuant to Section 200.065(2)(c), Florida Statutes (2017), where the City Commission enacted Resolution No. R- 17-0446, wherein a total tentative millage rate of 8.0300 mills was adopted; NOW, THEREFORE, BE IT ORDAINED 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 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 final total rate of 8.0300 mills on the dollar of the taxable value of such property for the Fiscal Year commencing October 1, 2017 and ending September 30, 2018, computed as follows for the purposes of: 7.4365 mills to fund the General Operating Budget; and 0.5935 mills to provide for the payment of maturing principal and interest, and charges and requirements related thereto, of voter approved indebtedness. Section 3. The final millage rate herein adopted for the purposes of funding the General Operating Budget is 4.84% greater than the rolled -back rate of 7.0934 mills. Section 4. If any section, part of a section, paragraph, clause, phrase, or word of this Resolution is declared invalid, the remaining provisions of the Resolution shall not be affected. Section 5. This Resolution shall be effective as of October 1, 2017 after final reading and adoption thereof.' APPROVED AS TO FORM AND CORRECTNESS: ndez, ity Attor ey 9/29/2017 1 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.