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HomeMy WebLinkAboutAgenda Item Summary FormAGENDA ITEM SUMMARY FORM File ID: #16470 Date: 08/26/2024 Commission Meeting Date: 09/26/2024 Type: Ordinance Subject: Approve Final Millage FY '25 - City of Miami Purpose of Item: Requesting Department: Office of Management and Budget Sponsored By: District Impacted: To establish the millage rates for the fiscal year ending September 30, 2025 (FY 2024- 25) at: General Operating 7.1364 Debt Service 0.2536 Total Millage Rate 7.3900 Background of Item: The City of Miami FY 2024-25 Proposed Operating Budget, as presented on August 19, 2024, contains the following recommended millage rates: General Operating 7.1364 Debt Service 0.2536 Total Millage Rate 7.3900 On July 25, 2024, the City Commission approved the millage caps and set the Budget Hearing dates, as approved by R-24-0284. A five- year history of millage rates is shown below: FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 Proposed General Operating Debt Service 0.2536 Total Millage Rate 7.6665 7.6665 7.5539 7.1364 7.1364 0.3235 0.3235 0.3235 0.3235 7.9900 7.9900 7.8774 7.4599 7.3900 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 3 and no later than September 18. The City City of Miami File ID: 16470 (Revision:) Printed On: 8/7/2025 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 Saturday, September 7, 2024 and the second budget hearing on Thursday, September 26, 2024. Miami- Dade County is scheduled to present their budget hearings on September 5, 2024 and September 19, 2024. The School Board Budget Meeting is scheduled for September 11, 2024. Effectively, the tentative millage adopted on July 25, 2024 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 Total Fiscal Impact: Total Fiscal Impact: General Fund $1,167,203,000; Debt Service (GOB) $37,284,000 Reviewed B Office of Management and Budget Marie Gouin City Manager's Office Larry M. Spring City Manager's Office Arthur Noriega V Legislative Division Valentin J Alvarez Office of the City Attorney Xavier Alban Office of the City Attorney George K. wysong III City Commission Todd B. Hannon Legislative Division Valentin J Alvarez Office of the City Attorney Xavier Alban Office of the City Attorney George K. wysong III City Commission Maricarmen Lopez Office of the Mayor Mayor's Office Office of the City Clerk City Clerk's Office Office of the City Clerk City Clerk's Office Department Head Review Assistant City Manager Review City Manager Review Legislative Division Review ACA Review Approved Form and Correctness Meeting Legislative Division Review ACA Review Approved Form and Correctness Meeting Completed Completed Completed Completed Completed Completed Completed Completed Completed Completed Completed Signed by the Mayor Completed Signed and Attested by the City Clerk Completed Rendered Completed 08/27/2024 10:24 AM 08/28/2024 10:11 AM 08/28/2024 3:23 PM 08/28/2024 4:05 PM 08/28/2024 5:03 PM 08/28/2024 5:16 PM 09/07/2024 10:00 AM 09/16/2024 10:21 AM 09/17/2024 12:00 PM 09/17/2024 4:00 PM 09/26/2024 5:05 PM 09/27/2024 11:04 AM 09/27/2024 11:05 AM 09/27/2024 11:05 AM City of Miami File ID: 16470 (Revision:) Printed On: 8/7/2025 City of Miami Legislation Ordinance Enactment Number:14318 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 16470 Final Action Date: 9/26/2024 AN ORDINANCE OF THE MIAMI CITY COMMISSION RELATED TO TAXATION, 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 7.3900 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, 2024, AND ENDING SEPTEMBER 30, 2025; CONTAINING A SEVERABILITY CLAUSE; 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 the City of Miami, as amended ("Charter"), titled "Corporate Limits," and more specifically described in Exhibit "A" of the Charter, on file in the Office of the City Clerk; and WHEREAS, Section 200.065, Florida Statutes (2024), sets forth the method of fixing a millage rate; and WHEREAS, on July 1, 2024, the Miami -Dade County Property Appraiser ("PA"), pursuant to Section 200.065(1), Florida Statutes (2024), certified to the City the preliminary taxable value within its territorial limits, set at $94,135,310,116; and WHEREAS, the City prepared a tentative budget for the fiscal year ("Fiscal Year") beginning October 1, 2024, and ending September 30, 2025, and computed a total proposed millage rate of 7.3900 mills 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. R-24-0284, wherein it directed the City Manager to submit to the PA and Miami -Dade County Tax Collector the total proposed millage rate of 7.3900 mills, together with the required information set forth in Section 200.65(2)(b), Florida Statutes (2024); and WHEREAS, at the First Budget Hearing held on September 7, 2024, by a unanimous affirmative vote, the City Commission approved the total proposed millage rate of 7.3900 mills; and WHEREAS, Section 200.065(5)(a)(1), Florida Statutes (2024), requires that the now final millage rate of 7.3900 mills would further require, at the time of the Second Budget Hearing, a two-thirds (2/3rd) vote, or four -fifths (4/5ths) vote, of the members of the City Commission, on the final determination to adopt such millage rate; and WHEREAS, Section 200.065(2)(c), Florida Statutes (2024), requires the City Commission to hold a second public hearing on the final budget and the proposed final millage rate and such public hearing has occurred earlier today in this meeting; City of Miami File ID: 16470 (Revision:) Printed On: 8/7/2025 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 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 7.3900 mills on the dollar of the taxable value of such property for the Fiscal Year commencing October 1, 2024, and ending September 30, 2025, computed as follows for the purpose of: 7.1364 mills to fund the General Operating Budget. 0.2536 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 purpose of funding the General Operating Budget is 10.73% greater than the rolled -back rate of 6.4447 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, 2024, after final reading and adoption thereof.' APPROVED AS TO FORM AND CORRECTNESS: ge Wy j ng III, C y ttor -y 8/28/2024 e ge Wy j ng III, C y ttor- -y 9/17/2024 1 If the Mayor does not sign this Ordinance, 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 Ordinance, it shall become effective immediately upon override of the veto by the City Commission. City of Miami File ID: 16470 (Revision:) Printed On: 8/7/2025